Motseng Trading admits collusion in state uniform tenders

The parent company will pay a penalty for colluding with Good Hope Textile Corporation and Monoge Mining Contractors on tenders issued by Treasury and Armscor.

FILE: SANDF ceremonial and marching band members on parade. Picture: Thomas Holder/EWN

JOHANNESBURG - The Competition Tribunal says Motseng Trading has admitted to collusion in tenders for state uniforms.

In a statement issued on Wednesday, the tribunal confirms a consent agreement with the second of three companies involved in the bid-rigging of tenders issued by Treasury and Armscor for the supply of fabric used to manufacture uniforms for the Department of Correctional Services, the South African Airforce, South African Military Health Services and the South African Army.

As a result, parent company Motseng Investment Holdings is to pay a penalty on behalf of Motseng Trading for colluding with Good Hope Textile Corporation, trading as Da Gama Textiles, and Monoge Mining Contractors in relation to the tenders issued by Treasury and Armscor.

According to the complaint by the Competition Commission, Da Gama, Motseng Trading and Monoge Mining exchanged information on their bids and agreed on prices they would quote in their bid submissions.

Da Gama Textiles first settled this matter and a fine of R2.1 million was imposed and confirmed by the Tribunal on 25 January 2017.

Motseng Investment Holdings will pay a R200,000 settlement which amounts to 3.2% of Motseng Trading’s annual turnover for the 2015 financial year.

The commission says Motseng Trading had cooperated with the investigation and had ceased any relationship with Da Gama as soon as they realised they were under investigation.

It was also taken into consideration that Motseng Trading had ceased operating from March 2015. Motseng Trading was a small company without manufacturing capability and sourced its fabrics from Da Gama.

The matter involving Monoge Mining has yet to be concluded.