The Competition Commission has referred KF Computers and SAAB Grintek Defense to the Competition Tribunal for prosecution for cartel conduct.

The two companies have been charged with collusive tendering in respect of a tender which was publicised by State Information Technology Agency (SITA).

The tender was for the provision of network maintenance and system support services to the South African Air Force’s (SAAF) Ground Command and Control Systems (GCCS) and Current Intelligence System (CURIS).

The prosecution follows a complaint from SITA in March 2016 alleging that KF Computers and SAAB may have co-ordinated their response to the tender.

The Commission found that KF Computers and SAAB discussed and agreed as to their respective tender bids in response to the SITA tender advertisement, which it believes amounts to collusive tendering in contravention of the Competition Act.

The Commission has asked the Tribunal to impose a fine of 10% of the respective companies’ turnover.

In separate news, the Competition Commission has also referred Mix Telematics Africa, Fleetco South Africa, Hyper Auto, Soltrack and Tectra Telematics to the Competition Tribunal for prosecution fleet management solutions suppliers, for cartel conduct.

The firms have been charged with market division by allocating customers in the market for the provision of value-added fleet management solutions in contravention of the Competition Act, and follows an investigation initiated by the Commissioner on 8 November 2016.

The Commission’s investigation found that between at least 1998 to date, Mix Africa has had an agreement with Fleetco South Africa, Hyper Auto, Soltrack and Tectra Telematics that it would refrain from approaching their customers, which it believes amounts to market division by allocating customers in contravention of the Competition Act.

The Commission has asked the Tribunal to impose an administrative penalty of 10% on the turnovers of the four companies.