The head of Adcock Ingram Critical Care, Tiger Brands’s healthcare division, has been suspended following allegations of collusion by the Competition Commission, the company said on Tuesday.
Tiger Brands non-executive chairperson Lex van Vught said the company is ”devastated” by the allegations and has launched an ”immediate and urgent independent investigation” into all its businesses.
Arthur Barnett, managing executive responsible for Adcock Ingram Critical Care, was suspended with immediate effect pending the outcome of the independent investigation.
On Monday, the Competition Commission announced it had been investigating Adcock Ingram Critical Care, Dismed Criticare, Thusanong Health Care and Fresenius Kabi South Africa, and had referred the first three companies to the Competition Tribunal for prosecution.
This was after a three-year investigation found the companies had engaged with each other during tender processes to avoid competition and manipulate prices.
Business Day newspaper quoted the commission’s senior legal analyst, Nandi Mokoena, as saying Tiger Brands was included in the commission’s investigation as several of its directors knew about the collusive behaviour but did nothing.
The company confirmed that it was cited as a respondent but no relief was being sought against it.
”We are deeply distressed that our proud Tiger Brands heritage and company name is associated with such allegations. We will take swift and strong action. We will extend this investigation into every single business that we are involved in. We are determined to find and root out any anti-competitive or collusive practices,” said Van Vught.
He said the company aims to have the investigation completed in two weeks and the findings will be shared with the commission. All managers will also ”be obliged” to sign an undertaking ”attesting to any knowledge, involvement or innocence regarding collusive practices”, he said.
The commission has filed papers with the Competition Tribunal and is seeking a fine from the companies. The companies will have the opportunity to respond to the papers filed by the commission.
They are accused of collusive tendering and market allocation, both of which are contraventions of section 4 of the Competition Act. — Sapa