Tiger Brands has been justifiably slammed over its role in the bread price-fixing scandal, yet CEO Nick Dennis seems to have gone to ground.  The FM asked Tiger Brands chairman Lex van Vught for his views on the price-fixing scandal.


FM: Do you feel Tiger Brands has been honest and direct over the price-fixing at Albany?
Lex van Vught: Yes, we have. We reacted appropriately in February when we immediately initiated an independent investigation into the allegations. We co-operated throughout with the Competition Commission, and will continue to do so in the investigation into the milling business.

FM: Do you feel the press has been overly harsh on Tiger Brands?
LvV: No. It was a matter of great importance that was brought to light. We expected the media to react harshly because of the implications on the pricing of a staple food.

FM: Given Tiger Brands’Brands alleged commitment to transparency, why is CEO Nick Dennis avoiding speaking to the press?
LVV: Nick has been under intense media pressure and I believe he has responded openly, and he will continue to do so.

FM: But the The FM tried repeatedly to get hold of Dennis, and though he said he would come back to us, he hasn’t?
LvV: I’m sorry to hear that. Over the past couple of weeks in particular, the interest from the media around the Competition Tribunal hearing has been demanding and Nick just wants to get back to running the business.

FM: Do you find it suspicious that Dennis has gone to ground after an anonymous letter surfaced, implicating him (and other directors) in the price-fixing at Albany?
LvV: Not at all. The letter came from an anonymous source and the allegations were unsubstantiated. Nick has appealed for anyone (at the company) with more information to come forward. We do have a whistle-blowing line and any information would be treated in the strictest of confidence.

FM: Are you confident that Dennis and other executives had no part in this?
LvV: On the evidence submitted to us and from the independent investigation by (law firm) Edward Nathan Sonnenbergs, the board is satisfied that none of the executives at the time participated in, or were aware of (price-fixing) discussions.

FM: Have any shareholders suggested that Dennis or other executives resign?
LvV: I did receive a letter from a private shareholder expressing his dismay and suggesting stronger action, but there have been no such suggestions from any of our larger institutional shareholders with whom we are in constant contact.

FM: Why is Tiger Brands not releasing the anonymous letter or the full Edward Nathan report to the public?
An edited version of the Edward Nathan Sonnenbergs report will be released to the media in due course with the Competition Commission’s consent. The reason it will be an edited version is because the milling investigation is  continuing. 

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