The Commission is investigating allegations against the R800 million tender won by Sekunjalo to combat illegal fishing along South Africa's coastline.
According to Corruption Watch, a non-profit organisation that gathers and reports information on corruption in South Africa, Sekunjalo is said to have had an unfair advantage as it submitted four separate bids under different company names. The non-profit organisation raised further concerns around a conflict of interest involving one of Sekunjalo's subsidiaries, Premier Fishing. Premier Fishing has rights to fish in South Africa, which effectively allows Sekunjalo to be both referee and player in the fishing industry.
Collusive tendering is per se prohibited under s4(1)(b)(iii) of the Competition Act. The competition authorities have previously found collusive tendering to include the rigging of bids, bid allocation and bid rotation, as well as the submission of cover bids and cover prices, agreements on tender prices and the allocation of bids to customers or territories.
Written by Chris Charter, Director of Competition and Kayley de Oliveira, Associate in Competition, Cliffe Dekker Hofmeyr