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.
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.