Medical equipment supplier Intermed has maintained its innocence despite being slapped with a hefty fine by the Competition Tribunal for alleged cartel conduct during a tender process.

A Cape Times report says Intermed – which had not won the 2019 R1m tender in question – has been fined R50 000 for allegedly colluding on the provincial Health Department tender, and has been ordered to implement a competition law compliance programme.

An Intermed spokesperson said it noted that the tribunal recommended that an addendum be added to the Competition Commission submission, which reads: ‘The commission has agreed to enter into the consent agreement without an admission of liability by Intermed... In the consent it was described as an administrative penalty and in the spirit of good faith we agreed and paid this. As a result, we feel the matter is now closed.’

The commission's investigation found that Intermed and BMS Medical had assisted each other when completing their tender documents.

The commission concluded that this conduct amounted to collusive tendering in contravention of section 4(1)(b)(iii) of the Act.

The tribunal said that the company has undertaken to refrain from anti-competitive conduct.

‘Although Intermed has agreed to the terms of the consent agreement, it does not admit that it contravened the Act, as alleged by the commission. The commission, on the other hand, has agreed to enter into the consent agreement with Intermed without an admission of liability by Intermed, based on a combination of factors,’ its statement read.

The factors included that Intermed is a first-time offender and has never contravened the Act before; it is a small firm; it did not win the tender in question; the tender was small estimated at R1m for three years; and it had fully co-operated with the commission.

Full Cape Times report