Dirty Dough in the Bread Market?


According to Galei Tzahal (Army Radio) this morning, the executives of Israel’s leading bakeries are suspected of scamming the public.

Tel Aviv Magistrate's Court extended the remand yesterday (Monday) of CEO Yaron Angel of Angel Bakeries and CEO Yehuda Shnidman of Berman Bakery until Wednesday. 

They are suspected of having operated an illegal cartel between the four main bakeries in Israel: Berman, Angels, Davidovitz and Merhavim. The case has been brought against the bakeries by Israel’s Anti-Trust Commission.

In view of the fact that bread is a staple commodity for the poorest sector in Israel, there are Government price controls on standard loaves. (Israeli consumers watch out: there are not controls on non-standard loaves, where free markets rule).

Allegedly, these bakeries nevertheless found ways to cheat the system, by deciding amongst themselves who should win which major customer accounts, fixing tenders at hospitals, Army, the prison services etc…and so scamming the Government and other large customers out of millions of shekels.

In these days of communications technologies, it must be pretty easy to form cartels. No back-room meetings. Just set up skype accounts, etc.

I am interested what methods the bread executives used, and how they got caught…  

If they really were cheating the system – that’s to say all of us - they should get toasted.
     

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