Giant firms in Gautrain scandal

Pretoria - Two of the country's construction giants, through their subsidiaries, colluded to win a tender for the supply of concrete sleepers for the Gautrain.

The involvement of these giants, Murray & Roberts and Aveng, over many years in a cartel in the precast-concrete industry came to light on Wednesday.

Aveng's subsidiary, Infraset, agreed to pay a R46m fine in settlement with the Competition Commission. The fine was ratified by the Competition Tribunal on Wednesday. The Murray & Roberts subsidiary, Rocla, spilt the beans about the long-standing cartel.

Rocla received conditional exemption after its information assisted the commission in its investigation.

The commission found that competitors, including Infraset, Concrete Units, Rocla and Southern Pipeline Contractors, participated in a cartel from 1973 to September 2007, fixing prices and market conditions. The companies were involved in manufacturing concrete pipes, sewage pipes and manholes in Gauteng, KwaZulu-Natal and the Western Cape.

In 2002 Infraset and Rocla together decided, through their "respective representatives" that Rocla would bid higher than Infraset for a contract to supply precast concrete pipes for a Portnet project. This was to ensure that Infraset would get the contract.

The pair again colluded on the Gautrain tender in 2005. They decided not to submit separate tenders, but to do so through a joint venture, thus ensuring that they shared the contract.

During meetings between 2002 and 2006 they also shared markets, products and contracts in Botswana, Swaziland, Namibia, Zambia, Tanzania and Mozambique.

Murray & Roberts chief executive Brian Bruce said management and its board are committed to root out such unacceptable practices.

Where proof existed that the behaviour of individuals had endangered the company, "appropriate steps" would be taken to "protect shareholder value".

- Sake24.com

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