More trouble for construction sector in South Africa
Trouble for construction sector in South African deepened this week after reports emerged that the Hawks – The Directorate for Priority Crime Investigation – would launch fresh probe against construction companies over allegations of fixing of contracts.
The criminal and civil charges mainly concern the construction of World Cup stadiums in one of the potentially worst incidents of corruption facing the sector.
Trouble for construction sector in South Africa began 2013 when probing criminal charges against various construction companies in South Africa was initially slated to start.
But it was put on hold while the Competition Commission finalised its investigation of various cases of collusive behaviour. The commission has since sent its last case to the tribunal for prosecution.
The industry also faces law suits as companies claiming they suffered losses as a result of the collusion seek redress.
The commission settled with 15 out of 18 firms that participated in and were found liable under the fast-track settlement in 2013. The agreements with the 15 firms on settlement were confirmed by the tribunal in July 2013, with a total R1.4bn in administrative penalties levied against these firms.”
Itumaleng Lesofe, the commission’s spokesman confirmed their agreement with the Hawks that the probe should wait until the commission had finished its own investigations.
According to Chantelle Benjamin, Tribunal spokeswoman, about 10 entities including the Gauteng provincial government, Coega and Transnet had applied for, and been granted, certificates of decision which would allow them to take civil action against the collusive companies.
The collusive behaviour is estimated to have added about R14bn to the construction costs of the 2010 World Cup stadiums with costs carried by the municipalities involved.