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Cape Town - Democratic Alliance MP Pieter van Dalen, who submitted a complaint about Sekunjalo’s alleged bid-rigging to the Competition Commission, is considering laying criminal charges against government officials and employees of Sekunjalo.
This came after the Competition Commission refrained from making a ruling in a case in which Sekunjalo Marine Services was accused of collusion when bidding for a marine patrol vessel tender.
Van Dalen said the commission’s ruling doesn’t mean they’re “off the hook”, as the companies involved “got away on a technical point”.
The complaint dates back to March 12 2014 when the office of the public protector lodged a complaint of potential bid-rigging regarding a marine patrol tender issued by the Department of Agriculture, Forestry and Fisheries.
In December 2013 Public Protector Thuli Madonsela found that the tender had been awarded irregularly, and referred the clause about collusion to the Competition Commission for further investigation.
Sekunjalo, which had originally been the preferred bidder for an R800m marine patrol tender with government, withdrew its bid when the competing marine company Smit Amandla Marine - who held the contract previously - wanted to challenge it in court.
Van Dalen submitted the complaint against Sekunjalo to the Competition Commission on January 5 this year, appealing to the body to investigate a case of potential bid-rigging by Sekunjalo.
On Wednesday, however, the commission’s Cartels Division manager Makgale Mohlala notified Van Dalen in writing of the body’s decision to not make a ruling in the matter. The case will therefore not be referred to the Competition Tribunal.
The reason for the commission’s decision, Mohlala said, was because a particular section in the Competition Act did not apply to “constituent firms within a single economic entity”.
In this instance Sekunjalo Investments Limited is the holding company under which the alleged colluding companies Sekunjalo Marine Services Consortium, Premier Fishing SA Ltd and Premier Fishing Consortium resort.
“Premier Fishing is a wholly owned subsidiary of Sekunjalo Investments and Sekunjalo Marine Services is a division of Sekunjalo Investments. Sekunjalo Marine Services Consortium and Premier Fishing Consortium were also controlled by Sekunjalo Investments,” the letter read.
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The firms therefore all fall under one entity named Sekunjalo Investments Limited, and prohibit collusive agreements do not apply to constituent firms within one single entity, the commission argued.
Van Dalen said the commission’s decision leaves the door open for future collusion.
“This is very wrong. Because of a loophole in legislation there were no further proceedings, but I haven’t finished with them yet.”
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