GVK TO PAY R6M FINE IN SETTLEMENT WITH COMPETITION AUTHORITIES

The Competition Tribunal has ordered local construction firm GVK Siyazama Building to pay an administrative
penalty of just over R6-million after the firm admitted to collusive tendering
in three construction projects in the Western Cape.

The firm’s admission and its agreement to pay the fine, forms part of a
consent agreement it had concluded with the Competition Commission.

The agreement was confirmed as an order by the tribunal on Thursday and
brings an end to a “protracted legal process of some ten years,” GVK CFO John de Sousa said in an emailed
response on Friday.
 
In terms of the agreement, GVK admitted that it had colluded on projects involving the construction of a Mediclinic
hospital, in Brackenville;
alterations to and an extension of the Tygervalley mall; and the construction of a warehouse and
office buildings.
 
In addition to GVK’s admission and its agreement to pay the
fine, the firm will implement a competition law compliance programme.

In this respect, De Sousa said stringent processes and disciplinary
measures were now in place to ensure that no trading entity in GVK’s portfolio would
participate in any pricing strategy that may be deemed to be uncompetitive in
future.

“Our business has changed
dramatically in the last decade, including a recent change in shareholding and
leadership. We are a progressive employer and committed to the future of
the construction industry in this
country,” he commented, adding that the industry provided employment to
thousands of people and had crucial links with other sectors.

“It’s about contributing to society and making a difference in people’s lives, a critical element of nation building and a fundamental component of resurrecting the ailing South African economy,” he said. https://www.engineeringnews.co.za/article/gvk-to-pay-r6m-fine-in-settlement-with-competition-authorities-2019-06-21