Competition Authority to appeal tender rigging case

Competition Authority has vowed to challenge the decision of the Competition Commission to dismiss a case in which they had taken Raheem Investments before the commission on allegations of bid rigging in a multi million tender for the supply of goods to government schools.

Competition Authority alleges that Raheem Investments was colluding with an employee of Super Trading who helped Raheem Investment to lower the prices of goods in order to disadvantage his employers Super Trading from winning the tender. Competition Authority, Legal Director Duncan Morotsi stated that they intend to challenge the decision before the High Court once they are served with a judgement. Morotsi said that they are not convinced with the Commission’s decision to dismiss the case on grounds that the Competition Authority failed to provide evidence that there was bid rigging.

He said that they have since provided the commission with such evidence where the owner of Nazneem Mhaisken made an undertaking that she indeed colluded with Super Trading to fix prices.

He said they brought the case before the commission since the CA was unable to impose financial penalty against her.  Morotsi argued that since Mhaisken had made an undertaking that she intentionally perpetrated the activities, this shows that there was an offence amounting to bid rigging.

He explained that Raheem Investments was colluding with Super Trading employee where he would disclose the prices of goods  that Super Trading had charged in the tender in order to disadvantage Super Trading which was also bidding for the tender. Morotsi stated that there was enough evidence to show that Raheem Investments was involved in bid rigging scandal because they even found evidence during the raid at Raheem Investment where copies of cheques amounting to P153 000 were found to have been paid the employee.

When delivering their judgement the Competition Commission comprising five commissioners dismissed the Competition Authority allegations of bid rigging arguing that there was not enough evidence to show that there was bid rigging. However, the Competition Commission Chairman, Zein Kebonang warned Raheem Investment owner, Nazneen Mhaisken to desist from such conduct since she had admitted that she was working with Super Trading employee to lower the prices for her company to win the tender. 

Kebonang further stated that the evidence that was brought before the commission was not set out clearly to show that there was bid rigging. The Competition Authority alleges that Raheem Investments colluded with Super Trading employee in order to under-cut prices for goods supplied to schools in Kanye, Molepolole, Jwaneng, Hukuntsi and other places in a tender worth P9 million since 2011 to date.