Share

Confessions shock Gauteng department

Johannesburg - The Gauteng roads and transport department has awarded contracts worth R545m to two companies embroiled in the construction cartel scandal.

The Sunday Independent reported that Power Construction, which faces prosecution after failing to settle with the Competition Commission, was awarded a R239m contract in May to upgrade a road in Ekurhuleni.
 
Stefanutti Stocks, which was fined about R307m by the Competition Tribunal, was also awarded a contract of R306m to rehabilitate a road in Pretoria.

The department said however that while it was shocked at the confession to collusion by players in the construction industry, the current contracts awarded had not been part of the investigation and were therefore lawful.

“We view such collusive behaviour as anticompetitive and not in the public interest," said department spokesperson Octavia Mamabolo this week.

"The department is taking a keen interest in the matter and closely monitoring developments.”

The 15 construction firms, which have entered into settlement agreements with the Competition Tribunal, agreed to penalties collectively totalling R1.46bn regarding collusive tendering. About 300 instances of bid-rigging were revealed.

The Competition Act stipulates that the money received from penalties must go to National Treasury.


We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.93
-0.2%
Rand - Pound
23.90
-0.0%
Rand - Euro
20.44
+0.1%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.1%
Platinum
906.59
+1.1%
Palladium
1,012.66
+1.1%
Gold
2,221.55
+1.2%
Silver
24.87
+0.9%
Brent-ruolie
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.9%
Resource 10
57,251
+2.9%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders