Raiders surprise panel beaters

Two Pretoria panel-beating companies, Eldan Auto Body and Precision & Sons, were surprised on Friday when Competition Commission officials raided their offices on suspicion of collusion.

"They are here now, taking documents and looking on the computers," a receptionist whispered when telephoned.

The search and seizure took place at premises of these two firms and at the Vehicle Accident Assessment Centre in Centurion.

The commission said there was reason to believe that information relevant to its investigation into the autobody-repair industry would be found on the premises of the two companies.

It said documents and electronic data seized would be analysed with other information gathered to determine if the Competition Act had been contravened.

The two companies are among a handful of panel beaters approved by big car brands such as Mercedes-Benz, Toyota and Jeep.

The Vehicle Accident Assessment Centre determines the cost of repairing car damage for customers of Precision and Sons and Eldan.

The commission would not provide details of its investigation.

The two companies raided would not comment when phoned again later in the day.

The panel-beating industry is reportedly rife with all sorts of seedy practices such as channelling business from insurers to chosen panel beaters, which in turn do business with certain damage-assessment centres.

Prices are often agreed on beforehand. Such practices kill smaller panel beaters trying to survive and inflate the costs of repairing cars.

The Competition Commission has been investigating the panel-beating industry for years.

Lawyer Leana Engelbrecht said the c ommission had the authority to collect any information and documentation it wanted to assist with investigations.

Raids typically took place when officials felt that information was not being provided.

A warrant would be obtained from a court and handed to someone in the workshop before the search began.

This latest raid adds to the commission's small but growing list of raids since it was formed in 1999.

Engelbrecht said the raid was the second by the commission this year.

The first was in April at goods companies Unilever and Hudson & Knight relating to the commission's investigation into the market for the manufacture and supply of edible oils and margarine.