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Construction cartel may face NPA action

Jun 26 2013 15:35
Ebrahim Patel.

Economic Development Minister Ebrahim Patel. (Werner Beukes, Sapa) (Werner Beukes)

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Cape Town - The construction companies which were fined R1.46bn over a collusion racket could face further action, reported EWN on Wednesday.

Economic Development Minister Ebrahim Patel said that the National Prosecuting Authority (NPA) was looking into the probe, according to the news agency.   

Patel said the NPA held meetings with the Competition Commission to consider what their role should be in the matter.

"It may not be the end," he said.

The Congress of SA Trade Unions accused the bosses involved of treason, while the National Union of Metalworkers SA said that they should be prosecuted.

The Competition Commission said on Monday that 15 construction companies agreed to pay fines that collectively total R1.46bn for collusive tendering.

This followed a probe into bid-rigging involving 300 projects valued at R47bn. R28bn was related to public sector contracts and R19bn concerned private sector projects.

The commission said the firms colluded to create the illusion of competition by submitting "sham tenders" or "cover pricing", to allow an alleged conspirator to win a tender.


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npa  |  ebrahim patel  |  construction  |  bid-rigging



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