Business people in South Africa who do business by responding to
tenders do so well aware that empowerment credentials assist in
standing a good chance of winning. Companies seeking to win a
tender over their rivals will therefore often put in tenders in
their own name as well as with an empowerment partner. This carries
very real competition risks.
A number of years ago, textile manufacturers Berg River Textiles
and Da Gama Textiles were both competing for tenders to supply
uniforms to various government departments. In each instance they
partnered with black empowerment entities, evidently in the hope
that this would be of assistance in winning the tenders. Both fell
foul of the competition law provisions regarding collusive
tendering.
