Group Five positive about opposing collusion charges

20 March 2015

Group Five says its lawyers have advised it that there are “evidentiary hurdles” in two cases of alleged collusion referred to the Competition Tribunal by the Competition Commission.

These relate to rehabilitation of the N5, section 4 between Senekal and Vaalpenspruit, in the Free State. The Commission requested the tribunal to impose the maximum penalty of 10% of Group Five’s yearly turnover.

The commission alleged that Group Five had entered into “bilateral collusive agreements” with WBHO and Murray & Roberts subsidiary Concor, now Murray & Roberts Construction, in terms of which Group Five would submit a lower bid price than WBHO and Concor to ensure it won the tender.

The commission had also, in November 2014, referred a case of alleged collusive tendering against Group Five relating to construction of stadia for the 2010 FIFA World Cup.

Group Five’s lawyers have indicated that the group had “good prospects of success” in opposing the two cases. The company was confident that provision made in the 2013 financial year for any potential penalties was adequate.

One case against Group Five was still the subject of an investigation by the commission and may or may not be referred to the tribunal.


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