managing executive of adcock ingram critical care faces charges of perjury 
30 May 2008

Ellis Barnet, the Managing Executive of Adcock Ingram Critical Care ("AICC"), has been accused by the Commission of committing perjury, by failing to answer truthfully questions directed at him and by deliberately provided false information to the Commission.

Barnett is alleged to have initiated and/or taken part in meetings and engaged in telephonic conversations between AICC and its competitors relating to price fixing and the division of markets in the supply of intravenous solutions.

Throughout the duration of the investigation, Barnett repeatedly denied under oath that he had been aware of any conversations or agreements established between AICC and its competitors with regards to the allocation of volumes of products and the prices tendered for RT/299. The Commission, in its investigation, established that AICC and its competitors were indeed engaged in collusive tendering with regards to contract RT/299, and that an agreement to divide the private hospital market among them did in fact exist. The Commission further established that Barnett, in his capacity as an employee of AICC, had attended meetings and conducted telephonic conversations, in which he and representatives of AICC's competitors had agreed to tender collusively with regards to contract RT/299 and to divide the private hospital market.

In knowingly giving the Commission false answers, it is alleged that Barnett's actions were tantamount to an obstruction of the Commission's work. The penalty for such an offence is a maximum prison sentence of six months or a fine of up to R2000, or both. However, the penalty for the common law crime of perjury is a matter to be determined by a court of law.

webber wentzel Competition e-Alert 30/05.08