A Johannesburg-based company was found guilty of overcharging when it supplied face masks to the Police Service during the height of the Covid-19 pandemic in April 2020.
Tsutsumani Business Enterprises has been ordered to pay an administrative fine of R3.4 million after being found guilty by the Competition Court ofovercharging the police service for the urgent delivery of 500,000 face masks in having been billed. span>
In its order, the court found that Tsutsumani violated the Competition Act from April 5 to April 29, 2020.
“Tsutsumani was responding to a police request for quotation for the urgent procurement of personal protective equipment from suppliers. This was necessitated by the Covid-19 pandemic and the national state of emergency which required masks to be worn by all police officers. The service required nine million masks a month for use by its frontline workers in the fight against the coronavirus during the lockdown.”
In September 2020, the Competition Commission said it was ” Concerned” that the financing agreement between the parties has contributed to the hit.
“The police service procured 500,000 surgical face masks from Tsutsumani at R32.50 per mask. Tsutsumani earned a gross premium of 87% on this transaction, which the Commission considers excessive.”
Tsutsumani was ordered to pay an administrative penalty of R3,441,689.10 within 30 working days. < /span>
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