Competition Commission raids offices of three recruitment agencies
by Xanderleigh Dookey,
2015-09-23 17:57:03.0
COMPETITION Commission investigators swooped down on three Sandton advertising and recruitment agencies during an early morning raid on Wednesday.
Commission officials seized documents and electronic data, as well as other pieces of information, from Human Communications, Kone Staffing Solutions and JobVest after obtaining High Court search warrants. The three firms are suspected of having engaged in collusive conduct for the provision of recruitment advertising services — a contravention of the Competition Act.
The commission alleges the agencies may have colluded when bidding for tenders by discussing responses to requests for quotations. Also, the three are suspected of having acted in concert on deciding pricing and agreeing on how to rotate advertising work, including that from the government.
The Competition Act states that this type of behaviour is prohibited as it amounts to price-fixing, market division and collusive tendering.
When BDlive arrived at the scene, a visibly agitated Human Communications MD Miles Corbitt denied that a search and seizure operation was taking place — even though commission investigators were seen walking in and out of the company’s offices.
"Nothing is happening, it is just an audit. Someone, because of sour grapes, probably lodged a complaint against us and that is why the commission is here. Let them investigate and let us see what they find", Mr Corbitt told BDlive.
Kone Solutions and JobVest could not be reached for comment.
Picture: THINKSTOCK
COMPETITION Commission investigators swooped down on three Sandton advertising and recruitment agencies during an early morning raid on Wednesday.
Commission officials seized documents and electronic data, as well as other pieces of information, from Human Communications, Kone Staffing Solutions and JobVest after obtaining High Court search warrants. The three firms are suspected of having engaged in collusive conduct for the provision of recruitment advertising services — a contravention of the Competition Act.
The commission alleges the agencies may have colluded when bidding for tenders by discussing responses to requests for quotations. Also, the three are suspected of having acted in concert on deciding pricing and agreeing on how to rotate advertising work, including that from the government.
The Competition Act states that this type of behaviour is prohibited as it amounts to price-fixing, market division and collusive tendering.
When BDlive arrived at the scene, a visibly agitated Human Communications MD Miles Corbitt denied that a search and seizure operation was taking place — even though commission investigators were seen walking in and out of the company’s offices.
"Nothing is happening, it is just an audit. Someone, because of sour grapes, probably lodged a complaint against us and that is why the commission is here. Let them investigate and let us see what they find", Mr Corbitt told BDlive.
Kone Solutions and JobVest could not be reached for comment.
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