More than R30-billion in in dodgy construction deals have apparently been unearthed by the Competition Commission, which has now invited companies that are guilty of collusion to come forward. If they do they will be treated more leniently than others.
The offer for leniency closes in April and, if accepted, will mean that firms will not pay the maximum penalty and their settlement will be fast-tracked.
The Competition Commission is investigating 65 tender-rigging cases in the construction industry involving more that 70 projects worth about R30-billion.
The contracts under investigation apparently include parts of the Gautrain rail network, several road construction projects and the World Cup stadiums in Green Point, Polokwane and Nelspruit.
Apparently the Commission’s investigation has uncovered widespread anti-competitive behaviour through allocating tenders and agreeing prices prior to the bids being submitted.
Markets for construction products such as steel, bolts, concrete and plastic pipes, wire-mesh and reinforcing steel have also been investigated and it appears that subsidiaries of several major construction companies are involved in cartels producing components used in construction.
The Commission says that 150 marker applications (those that intend to apply for leniency) have been received. Most of the corporate leniency applications have been submitted by Group Five, which has been co-operating with the Commission since 2009.
Applications have also been received from Grinaker-LTA and Murray & Roberts.
Some of the contracts under investigation include the low-income housing projects around the country. The Commission says it wants to rid the construction industry – and its satellites – of deeply entrenched anti-competitive conduct.
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