Two companies found to have excessively overcharged the SA Police Service for hand sanitiser to the tune of R9.8m at the height of the Covid-19 crisis have been brought to justice.
BlueCollar Occupational Health and Atletico Investments have been jointly and severally penalised R3,550,000. Stock photo.Two companies found to have excessively overcharged the SA Police Service for hand sanitiser to the tune of R9.8m at the height of the Covid-19 crisis have been brought to justice.
In an order handed down by the Competition Tribunal, Gauteng-based BlueCollar Occupational Health and KZN-based Atletico Investments were jointly and severally penalised R3,550,000 in relation to their bulk supply of 10,000 25-litre containers of hand sanitiser in 2020.The tribunal found that during the hard lockdown, the SAPS desperately needed the product for members at the front line of efforts to contain the pandemic and enforce lockdown restrictions nationally.
In reasons for its decision, the tribunal described BlueCollar’s conduct as shocking in that it exploited the situation by charging excessively for hand sanitiser which was crucial to combat the pandemic. “This is the second excessive pricing case successfully prosecuted by the commission and determined by the tribunal in the context of a public procurement process during the pandemic,” the commission said on Tuesday.
“The first prosecution of price gouging in the context of public procurement relates to the April 2022 matter, where another SAPS supplier, Tsutsumani Business Enterprises, was found guilty of price gouging in its supply of face masks in 2020.”