Construction honchos WBHO and Group Five to face Competition Tribunal over bid rigging

Posted On Thursday, 29 October 2015 23:06 Published by
Rate this item
(0 votes)

Competition Commission refers the last case arising out of its investigation of bid rigging in the construction sector to the Competition Tribunal.

Tembinkosi_Bonakele

The Competition Commission on Monday said it had referred the last case arising out of its investigation of bid rigging in the construction sector to the Competition Tribunal.

The case is against Wilson Bayly Holmes-Ovcon (WBHO‚ WBO)‚ which colluded with Group Five Construction (GRF) by fixing contractual conditions relating to the N17 link road between New Canada and Soccer City (N17 project).

The commission said its investigation found that at a meeting of the South African Federation of Civil Engineering Contractors Association (Safcec)‚ WBHO and Group Five agreed on a preferred set of contractual conditions for the N17 tender issued by the South African National Roads Agency Limited (Sanral).

The commission said that on the basis of this agreement the two companies requested Safcec to approach Sanral on their behalf to demand that Sanral change its tender conditions and issue the tender with the conditions they agreed on — amounting to the fixing of trading conditions‚ which contravenes the Competition Act.

WBHO was notified of this project during the construction fast track settlement process and was invited to settle‚ but rejected the offer.

“This referral marks the end of the commission’s investigation of collusive conduct in the construction sector arising out of the fast-track process. Our focus will now be on litigation of cases that were referred to the tribunal for prosecution‚” commissioner Tembinkosi Bonakele said.

“The construction sector remains one of the key sectors of the economy‚ which government is prioritising to drive infrastructure development. It is therefore necessary to address any collusive conduct‚ which might inflate the costs of rolling out infrastructure development‚” he said.

Source: BD

Last modified on Thursday, 29 October 2015 23:44

Most Popular

Attacq Ltd and Tricolt break ground on Ellipse Waterfall

Aug 30, 2019
 13 2
Today Attacq Ltd the JSE listed REIT developing Waterfall City, and Waterfall Logistics…

Tshwane Regional Mall Grand Opening date set

Aug 31, 2019
  TSHWANE REGIONAL  MALL
24th October 2019, the long-awaited day earmarked for the grand opening of Tshwane…

Eris Property Group appoints successive CEO Barend de Loor

Aug 30, 2019
 BAREND DE LOOR
Eris Property Group has appointed a new Chief Executive Officer (CEO). Barend de Loor…

Cap Rates and Property Values - Is it time for a more significant move?

Aug 19, 2019
FNB John Loos
A few months on from the May general election, a somber mood is once again settling in in…

Redefine Properties appoints Daisy Naidoo as independent non-executive director

Aug 30, 2019
 STRATE 1
Redefine Properties appoints Daisy Naidoo as independent non-executive director.

Please publish modules in offcanvas position.