2010 corruption claims disputed

Johannesburg - Construction group Murray & Roberts (MUR) on Thursday moved to categorically refute public allegations of corrupt practices associated with the stadium projects for the 2010 Fifa World Cup.

In a statement, the group said: "Murray & Roberts is a highly regarded South African business with significant global activities and about 35% of its shares held by international investors.

"A significant percentage of its order book is with the South African public sector, which includes some of its involvement in projects associated with the 2010 Fifa soccer World Cup.

"While recognising an expressed public concern at an evident history of corruption in the global construction industry, often in concert with the authorities for whom the industry works, it is incumbent on Murray & Roberts as South Africa's construction industry leader, to place some perspective on public allegations of corrupt practices associated with the stadium projects for the 2010 Fifa soccer World Cup, which allegations are categorically refuted insofar as they refer to Murray & Roberts," it said.

The construction group said it took an industry lead before any public concern was expressed on possible corruption in the construction industry, adding that it initiated internal audits across its various operations and commenced a programme of communication and training to assist employees in understanding competition law and its implications on the group.

"Where any evidence of possible collusion is uncovered, disclosure is made and as promised publicly by the group, full cooperation given to the authorities," it said.

Murray & Roberts pointed out that it has been involved only in construction of the Greenpoint Stadium, as a joint venture partner given the size, complexity and timeframe required of the project. "The joint venture is directly responsible for less than 40% of the total cost of the project.

"The remainder has been under the direct control of the City of Cape Town and includes professional team fees, client costs, selected subcontractors, provisional sums and prime cost items determined in advance by the professional team. The project has been substantially redesigned and construction has been accelerated to overcome delays in award and the consequence of the redesign," Murray & Roberts said.

It added that the original tender pricing for all 2010 Fifa World Cup stadia was investigated by the National Intelligence Agency at the request of government, and as far as Murray & Roberts was aware, no concerns relating to tender irregularities or pricing were raised.

"In fact, evidence given by Murray & Roberts to this enquiry showed underestimation of the capital costs in the original proposals supporting the 2010 Fifa soccer World Cup bid. Murray & Roberts reiterates its commitment to work with the competition authorities on concerns relating to the construction industry," the group concluded.

- I-Net Bridge