It is shocking that Adcock Ingram Critical Care (AICC) would continue to benefit from public funds after it was found to have been involved in collusive tendering, the Black Sash said on Tuesday.
This comes after the Department of Health said that AICC remained in the running for a R5-billion contract for antiretrovirals and is to be considered for future purchases.
On Friday, the Competition Commission fined AICC, owned by Tiger Brands, R53-million for collusive tendering.
”We are shocked that AICC will continue to benefit from public funds in this way — it is a slap in the face of all who have received a compromised health service as a result of their collusion,” the Black Sash said in a statement.
It said it would make a submission to the Competition Tribunal — when the commission hopes to ratify the fine against AICC — recommending that the monies be used for health programmes focused on the poor and vulnerable.
It would also call on the tribunal to rule that companies guilty of collusion should be excluded from state tenders.
In addition, the Black Sash would be arguing that fear of prosecution, leading to a fine, has not deterred businesses from colluding to increase their profits and would call for stricter penalties.
The organisation also wanted the fine levied against the AICC to be higher and that key individuals responsible for collusive practices be identified and charged.
Government should award corporate tax relief only to those companies that practiced good corporate governance and demonstrated social responsibility,
In a separate statement the Black Management Forum (BMF) said it was extremely disappointed about the perpetual behaviour of corporate executives in criminal activities.
”The BMF congratulates the Competition Commission on sterling work in exposing this uncompetitive behaviour.
”We would like to see the commission implementing stiffer penalties for such behaviour,” BMF managing director Mncane Mthunzi, said. – Sapa