Legal row rages over bread cartel

30 November 2015 - 02:14 By Roxanne Henderson

The Competition Commission has accused the Supreme Court of Appeal of depriving victims of the Western Cape bread cartel of their right to access the courts. The appeal court earlier this month let Premier Foods off the hook for its participation in the 2006 cartel.The court ruled that the Competition Tribunal's declaration that Premier Foods had engaged in a prohibited practice under competition laws was invalid.Without this declaration, Cosatu, the National Consumer Forum and others planning a class action against the members of the bread cartel are not able to sue Premier Foods, Pioneer Foods and Tiger Brands.In appeal papers filed at the Constitutional Court last week the commission said the appeal court had shown little regard for the rights of alleged victims to access the courts.Cosatu, the National Consumer Forum, the Black Sash Trust and the Children's Resource Centre Trust launched a separate appeal in the same court last week.Premier Foods was granted immunity in exchange for assisting in the investigation of the cartel.It gave evidence against Tiger Brands, Pioneer Foods and Foodcorp, with which it had colluded on a national scale. Pioneer Foods was fined R195.7-million for its role in the cartel, and Tiger Brands and Foodcorp negotiated fines of more than R98-million and R45-million respectively...

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