15 of the biggest construction companies in South Africa have admitted to price-fixing and collusion and have settled with the Competition Commission to pay R1.5 billion in fines. Murray and Roberts, WBHO, Stefanutti Stocks, Basil Read, Raubex, Group Five, Aveng and a few more were indentified in hundreds of cases involving irregular or illegal behaviour in the construction industry spanning decades and involving projects worth nearly R50 billion.
The largest fines went to WBHO, Stefanutti, M&R and Aveng while whistleblower Group Five has apparently not been fined.
“Fifteen construction firms have been ordered to pay penalties amounting to R1.46-billion for collusive tendering, says the Competition Commission.”
“The contested projects are estimated to be worth about R47-billion and took place during 2006 and 2010. Of these, R19-billion were private sector projects and R28-billion were public sector projects. Three firms – Group 5, Construction ID and Power Construction – have not accepted the settlement deal and face prosecution.” [M&G]
Good to know they can be held accountable.