A large fine has been meted out to a company that grossly inflated the cost of face masks it supplied to the South African Police Service (SAPS) at the start of COVID-10.
The Competition Tribunal found that Tsutsumani Business Enterprises CC excessively charged the SAPS for the urgent supply of 500,000 three-ply surgical masks, which it had ordered at the peak of the pandemic’s outbreak.
The Tribunal found Tsutsumani guilty and fined it an administrative penalty of R3.4m. The order cited the money totalling R3 441 689 to be paid in 30 working days, reports The Citizen.
The Tribunal concluded that Tsutsumani exploited its dominance in the market during that period for the emergency acquisition of face masks. The enterprise was registered on National Treasury’s central supplier database and met the requirements of SAPS’ request for quotations to urgently supply them with masks.
According to the tribunal, this is the first case to be taken to court for excessive pricing in the context of tender process during the pandemic. It is also the first case to be resolved under consumer protection regulations.
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