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Competition Tribunal refuses appeal to halt Eskom supply collusion complaint

Aug 12 2018 16:03
Khulekani Magubane

The Competition Tribunal refused an application to have a complaint against companies implicated in price fixing and collusion for R240m in Eskom tenders dismissed.

The tribunal released a statement over the weekend in which it named at least seven entities that made arrangements where joint ventures were formed to submit bids on behalf of each other to score more Eskom work.

This comes after the Competition Commission started investigating following a complaint by Eskom in 2016. However, Eskom withdrew the complaint in 2017, but the Competition Commission decided to continue its probe.

“It (the commission) found that Waco Africa, through its division SGB Cape, reached bilateral agreements with Tedoc Industries, Mtsweni Corrosion Control and Superfecta Trading 159 to form and three joint ventures, namely Tedoc SGV JV, Superfecta SGB JV and Mtsweni SGB JV. 

“SGB Cape then allegedly submitted bids on its behalf and on behalf of the three joint ventures in which Waco held a stake,” the Competition Tribunal said in its statement.

The tribunal said it dismissed the application to throw out the complaint but upheld an application by the firms and granted another.

“The Commission is consequently required to make available specified non-privileged and unrestricted portions of the Commission’s record to the respondents and to provide a supplementary affidavit outlining whether the joint ventures were incorporated or not, as well as the provisions or facts relied upon to show collusive tendering and price fixing agreements involving Tedoc Industries, Mtsweni Corrosion Control and Superfecta Trading 159,” the statement said. 

The tribunal said the tender was for the supply, installation and dismantling of scaffolding and thermal insulation for 15 Eskom coal-fired power stations and was to run over a period of five years.

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