The Competition Tribunal has handed down a fine of R3.5 million to a supplier of hand sanitiser to the South African Police Service (SAPS) for excessive pricing during the Covid-19 pandemic. BlueCollar Occupational Health, based in Gauteng, was found guilty of exploiting the demand for hand sanitiser, which was considered essential in the fight against the spread of the virus.
In partnership with Atelico Investments, based in KwaZulu-Natal, BlueCollar overcharged SAPS R9.8 million for the bulk supply of 10,000 25-litre containers of hand sanitiser in 2020. The Competition Tribunal described BlueCollar’s conduct as “shocking,” as it took advantage of the critical need for hand sanitiser during the pandemic, particularly for SAPS members who were enforcing lockdown restrictions.
The Competition Commission successfully prosecuted the case, marking the second instance of excessive pricing during the public procurement process in the pandemic. In April 2022, Tsutsumani Business Enterprises, another SAPS supplier, was found guilty of price gouging in its supply of face masks in 2020 and fined R3.4 million. The Tsutsumani matter is currently under review before the Competition Appeal Court.
The Competition Tribunal imposed an administrative penalty of R3.55 million on BlueCollar and Atelico “jointly and severally,” meaning they share equal liability. The fine serves as a warning to other companies that exploit the Covid-19 pandemic for financial gain.
In conclusion, the Competition Tribunal has held BlueCollar Occupational Health and Atelico Investments accountable for excessive pricing during the Covid-19 pandemic, imposing a R3.5 million administrative penalty on the two companies. The excessive pricing case serves as a warning to other companies that engage in similar behavior during the pandemic, and the Competition Commission continues to monitor public procurement to prevent such instances from occurring.
