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“They adopted a pricing strategy whereby they could hedge their bets and make sure that only one or both of them won the bid, and not the other bidders. For this strategy to be successful, which was in the 2015 tender, both Aranda and Mzansi would have to be active participants in coordinating their bids, ”the court said.
It ruled that Aranda must pay an administrative fine of R5m and Mzansi R500,000.
In summary, the court said that Aranda and Mzansi submitted offers for the tender, but that they had already had a “close business relationship.” Aranda, the court said, was a supplier of blankets for Mzansi and the other bidders in the tender.
“However, the prices that Aranda quoted to other bidders were significantly higher compared to the quote offered to Mzansi, and the financial terms extended to Mzansi were more favorable than those granted to the other bidders. Therefore, the entry price of other interested bidders for the blankets (cost price) was significantly higher than that of Mzansi.
“When we turn away from the evidence and consider it in its entirety, the only reasonable inference that can be made in relation to the 2015 tender is that the defendants coordinated their bids,” the court said.
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