News

Construction collusion confirmation certificates precursor to civil cases

14 March 2014

The Competition Tribunal has issued around 100 certificates of decision confirming that 15 construction companies have indeed breached the Competition Act, potentially opening the way for civil claims for damages.

The certificates have been issued to the City of Cape Town, the South African National Roads Agency Limited (Sanral), Bayer, the Economic Development Department, and lawyers representing the National Black Contractors and Allied Trades.

They deal with a host of Sanral roads projects, some property developments, several World Cup soccer stadiums, mining contracts and a number of other civil engineering developments.

Competition Tribunal spokesperson Nandi Mokoena stressed that the competition tribunal did not ask why applicants wanted the certificates, but simply issued them when requested to do so. “So we can’t be sure that the applicants will use the certificates for claiming damages.”

But Competition Commission acting deputy commissioner Oliver Josie, who oversaw the fast-track settlement process, was of the view that the issuance of the certificates could well open the way for civil actions.

But while the certificates of decision were a critical first step, they were no guarantee of success in a civil proceeding.

By: Terence Creamer

A certificate has been issued for the Green Point Stadium, in Cape Town
Photo: Duane Daws

Full article at:http://www.engineeringnews.co.za/article/issuance-of-certificates-confirming-construction-collusion-seen-as-precursor-to-civil-cases-2014-03-13/rep_id:3182

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