WBHO refutes Competition Commission’s findings

14 November 2014

Construction major Wilson Bayly Holmes-Ovcon (WBHO) continues to deny that it was involved in collusive tendering regarding the construction of the 2010 FIFA Football World Cup stadia, stating on Thursday that it believes its conduct did not constitute a contravention of the Competition Act.

Tthe group thus refused to settle the complaint during the earlier Fast Track Settlement Process and the case was referred to the Competition Commission.

However, the commission on Wednesday found that the company – along with counterparts Group Five Construction, Murray & Roberts, Stefanutti Stocks Holdings and Basil Read – had participated in collusion when bidding for tenders, referring the case to the Competition Tribunal.

WBHO, meanwhile said activity in the local building markets remained “healthy”, with 6% growth in the division’s order book between June 30 and September 30.

Internationally, the West Hills mall in Ghana, was handed over in October. The division is currently constructing another two retail projects in Ghana and is in advanced negotiations for new projects in Ghana and Mozambique.

“No new mining sector contracts have been secured since June and the number of ‘real’ projects on which to bid remains low,” WBHO noted.

“The increase in the Australian order book is predominantly currency related and the building divisions’ performance in Australia is meeting expectations,” WBHO said

Capital Africa Steel (CSS) had performed “satisfactorily”, although markets remained challenging. The sale agreement with Dywidag Systems International was concluded after Competition Commission approval.

By: Natalie Greve

Read the latest issue

Latest Issue