Collusion by construction majors confirmed

13 November 2014

The Competition Commission has referred a case of collusive tendering to the Competition Tribunal regarding the construction of the 2010 FIFA Football World Cup stadia

against WBHO Construction, Group Five Construction, Murray & Roberts (M&R), Stefanutti Stocks Holdings and Basil Read.

The commission stated that these firms, except M&R, which was granted leniency, had not settled this case under the earlier Construction Fast Track Settlement Process.

“The commission’s investigations found that these firms colluded when bidding for tenders for the construction of [the] 2010 FIFA World Cup stadia .”

M&R confirmed that it was the corporate leniency applicant and was confined by confidentiality obligations to the commission.

“M&R will continue to cooperate with the commission and, accordingly, expects no penalty in regarding the [2010] FIFA World Cup stadia,” it noted.

The settlement process, launched in February 2011 and completed in July 2013, resulted in 15 consent agreements and a collective penalty of R1.47-billion, paid by the participating firms.

The State reportedly lost billions of rands through large-scale collusion and price-fixing by private-sector companies during several past infrastructure projects.

By: Natalie Greve

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