Both The Hawks and the Competition Commission are currently investigating claims that bid rigging lead to the cost of Cape Town Stadium ballooning from an initial R2.9 billion to R4.3 billion by the end of its construction period. This is but one of 65 cases around South Africa amounting to a value of approximately R29 billion.

As part of the two-tiered investigation, the Competition Commission will hold a tribunal in which members of the public will be invited to come forward with any information regarding the validity of the allegations or the lack thereof. The accusations detail that through collusion and price fixing, anti-competitive behaviour is currently running wrought throughout the construction industry.

Cape Town Stadium was built by the large multi-national South African construction firm Murray & Roberts, who are also responsible for major projects such as the Gautrain and Medupi Power Stadium, which is currently under construction in Limpopo province. As one of the country’s largest construction firms, any proof of anti-competitive behaviour could have a ripple effect throughout the industry.

Spokesperson for the City of Cape Town Kylie Hatton said the City would investigate a number of options should the claims prove true. These could include blacklisting companies involved in the scandal, or legal action in an effort to reclaim money lost from the artificial inflation of the stadium cost figure.

Source: Galetti