Power Construction unsuccessful in having collusive tendering bid withdrawn

06 September 2016

According to Engineering News, Power Construction and its subsidiary, Power Construction (Western Cape), were unsuccessful in their bid to have a collusive tendering complaint, filed by the Competition Commission with the Competition Tribunal in December 2014, withdrawn.

The matter involves a 2006 South African National Roads Agency Limited (Sanral)

maintenanceproject on the N1 between Touws River and Langsberg. At the time, Cape-based construction company, Haw and Inglis, attended a briefing in April that year and concluded that it was the only viable bidder for the project.

Concerned that the tender would be cancelled, Haw and Inglis asked Power construction (Western Cape) to submit a bid for the tender, which it did.

Subsequently, in a judgment released on Thursday, the Competition Tribunal dismissed arguments that Power Construction (Western Cape) was not directly named in the original complaint initiation, that Power Construction could not be held accountable for the actions of a subsidiary it bought after the contravention, and that the prohibited conduct had occurred more than three years before the commission initiated its complaint.

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