adminThe investigation was launched in 2010 after it emerged that there was possible price collusion in the local bread industry that resulted in bakers allegedly compromising on the quality of bread to maximise returns.
Bakers had raised the price of the commodity by up to 10 percent in response to an increase in the price of flour following an 85 percent spike in the global price of wheat in August last year.
In their submissions, CTC said that in September 2010, they received information that bakeries under the National Bakers Association had come together and agreed to increase the price of bread.
“In terms of Section 2.1 of the Competitions Act, this constituted restrictive practices which could influence the price of bread on the market,” said Mr Dumisani Sibanda, the CTC chairman.
He said the bakers had agreed that a standard loaf of bread was to be sold at a wholesale price of US0,90c and US$1 for retailers while the superior loaf would be sold at a retail price of US$1,10 and US$1 at wholesale.
Representing the NBAZ, Ms Thandiwe-Rigai Hove of Hove and Partners said the CTC had only notified them about the hearing on March 1 which was not enough time to consult all their members.
“There was no way we could have consulted all our 300 members within the 16 working days we were given by the CTC. We therefore request mandatory provision for preliminary investigation and appeal for a postponement of this hearing,” she said.
She noted that bread was the most basic of basic commodities and the issue had to be properly investigated as the outcome would affect the multitude of bakers under their association.
“We request for a minimum period of six months for investigation and an additional one calendar month’s notice of the hearing,” Ms Hove said.
BAZ president Mr Wellington Peyama also asked for a postponement as they were yet to conclude their own investigations.
“We were also not given enough notice to prepare our submissions, we just read it through the newspaper. We request time to alert our members and then make the necessary investigations and submissions,” he said.
Confederation of Zimbabwe Industries representative Mr Kuda Matare said his organisation had to wait for the NBAZ to finish its investigations before they could make their own submissions.
“We received notice of this hearing on March 5 and we were in the process of making our own investigation. However l would like to note that the NBAZ is also our member and they have to be part of the investigation.”
“We have done a preliminary report of our own pending consultations with NBAZ and they are still going through some legal consultations before they can consult with us so we have to wait for them to make their own submissions,” he added.
CTC said during their preliminary investigations, consultations were held with various bakeries that are members of NBAZ as well as other stakeholders that were alleged to have contributed to the alleged pricing of bread.
Mr Sibanda said given that all parties needed time to carry out consultations, the commission would only be able to give them until July to conclude and then make submissions.
Online Reporter