Sasko boss denies knowing of cartel

Sasko — part of the Pioneer Foods group — is appearing before the Competition Tribunal, fending off allegations that it was part of a bread cartel that flouted competition legislation.

Goosen said he was not aware of the conduct “and I did not condone it”.

Goosen said he was under the impression that the practice of competitors sharing market-sensitive information had ceased. He said such conduct was unlawful and reprehensible.

In his testimony last week, Premier Foods Western Cape regional director Terrence Lavery named Sasko's key account manager, Gerhard Lourens, as a central figure in phone calls and informal meetings between bread company representatives to discuss prices.

In his witness statement, Goosen on Monday moved to distance Sasko from the cartel conduct.

He said none of the Sasko information regarding price increases and their implementation “apparently exchanged at the meetings and in the telephone calls” changed or influenced Sasko's rate of price increases in the years 2003 to 2006, nor did “such information influence the timing of such increases”.

The commission has alleged that between 2002 and 2006 representatives of Sasko, Albany, Duens and Blue Ribbon discussed pricing, aligning prices and the timing of price increases.

"During all the time that I have been employed by Pioneer Foods, I have not been involved in any meetings or arrangements with competitors contrary to the dictates of competition law.

"I have taken part in no discussions with competitors with a view to fixing prices or other trading conditions or dividing markets," he said.

Under cross-examination from the Competition Commission's legal representative, David Unterhalter, Goosen — who is responsible for price increases at Sasko — said Lourens had not shared with him the information exchanged at the informal meetings.

"My decision to increase prices results principally from increases in Sasko's input costs.

"I did not know of these contacts between Sasko's employees and Sasko's competitors at the time they took place," he said.

Source: Business Day

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