Pioneer Foods’ legal experts are confident that the group has reasonable prospects of successfully defending the charges of bread-price fixing being investigated by the Competition Commission. The commission wants to hit Pioneer’s Western Cape bakeries with an administrative penalty of 10% of its 2006 revenue, which would amount to R384 million. “We regard these allegations in an extremely serious light and wish to reassure consumers that the matter is receiving the full attention of the board and management,“ says MD André Hanekom. “Through our legal advisers, we’ve been in regular contact with the competition authorities in order to move forward in this matter.” Pioneer has appointed a committee of non-executive directors to investigate all related matters with the assistance of external consultants. To date, Pioneer has not received the complaint referrals the commission promised to send, which allege that Pioneer Foods is involved in restrictive practices in the national bread and wheat-milling markets. – Staff reporter
