HomeHome SearchSearch MenuMenu Our productsOur products

Watchdog verdict: Prosecute construction cartel for bid-rigging

by , 18 July 2013

Following bid-rigging by construction firms over World Cup tenders and other projects, yesterday Corruption Watch said that directors of the firms who had knowledge of the collusion should face prosecution. At the end of June, 15 construction firms agreed to pay fines amounting to R1.46 billion by the Competition Commission. But it looks like this saga is anything from over…

Yesterday, saw a hearing at the Competition Tribunal “into the settlement agreement” facing the 15 construction companies that “rigged bids” for projects, including the 2010 World Cup, reports Fin24.

In June, 15 construction firms settled on fines amounting to R1.46 billion for collusive tendering

On June 24, the Competition Commission reached a settlement with 15 construction firms for collusive tendering in contravention of the Competition Act, notes IOL. The agreed figure came in at a whopping R1.46 billion.

After the construction firms agreed the settlement with the Competition Commission, the Competition Tribunal “must confirm all such settlements,” notes SABC.

Yesterday, Corruption Watch, a non-profit organisation, made a submission to the Competition Tribunal.

The organisation told those “affected by the collusive tendering” to pursue “civil claims for damages,” adds IOL. These include municipalities, private entities and provinces.

Corruption Watch said the construction cartel’s actions were corrupt

Corruption Watch said the collusion the firms participated in “amounted to corruption,” notes IOL.

The organisation also asked shareholders “to take legal action against directors” who knew about the collusion, notes Mail & Guardian.

In addition, Corruption Watch “called for the relevant prosecuting authorities to lay criminal charges against” directors who were involved in the scandal, adds Mail & Guardian.

Only time will tell if we’ve heard the last of the construction companies bid-rigging saga or if this is just the beginning of legal action by those bodies affected.



Watchdog verdict: Prosecute construction cartel for bid-rigging
Rate this article    
Note: 5 of 1 vote

Related articles



Related articles




Trending Topics