Two air force suppliers agree to pay penalties for alleged tender collusion

13 December 2021 - 18:21
Two SA Air Force suppliers have agreed to pay penalties of just over R2m to the Competition Commission for alleged tender collusion. The companies have not admitted they contravened the Competition Act, as alleged by the commission.
Two SA Air Force suppliers have agreed to pay penalties of just over R2m to the Competition Commission for alleged tender collusion. The companies have not admitted they contravened the Competition Act, as alleged by the commission.
Image: 123RF / Andreypopov

Two network maintenance firms have separately agreed to pay penalties to the Competition Commission for allegedly colluding on a SA Air Force tender.

The tender was issued by the State Information Technology Agency in December 2015 for the provision of network maintenance and support services for the air force's ground command and control systems and current intelligence system.

The commission’s investigation found that in January 2016, SAAB Grintek Defence assisted K.F Computers in completing its tender documents.  In turn, SAAB’s pricing for the tender was higher to ensure that K.F Computers would win the tender.

The commission concluded that the conduct between K.F Computers and SAAB amounted to collusive tendering in contravention of the Competition Act.

The commission said on Monday that the companies denied contravening the law, but have concluded separate settlement agreements with the commission wherein K.F Computers agreed to pay a penalty of R32,135 and SAAB agreed to pay a R2m fine.

The commission said in terms of the settlement agreement, and in addition to the R2m penalty, SAAB undertook to refrain from any anticompetitive conduct in contravention of the act in future.

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