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ANC: Let watchdog probe other sectors

The ANC has welcomed the Competition Commission’s R1.46 billion settlement with construction companies found guilty of colluding on bids, including the construction of world cup stadiums. Now the party wants the commission to widen its net and investigate other industries. The Competition Commission announced yesterday that it had reached a settlement with 15 construction firms for collusive tendering, in contravention of section 4 (1) (b) of the Competition Act. The collusion relates to certain public and private infrastructure projects between 2006 and 2010, including construction of some of the country’s stadiums for the 2010 World Cup.

The commission said the firms agreed to penalties collectively totalling R1.46bn. “The settlements were reached in terms of the construction fast-track settlement process, launched in February 2011. The fast-track process incentivised firms to make full and truthful disclosure of bid rigging in return for penalties lower than the commission would seek if it prosecuted these cases,” it said. Competition Commissioner Shan Ramburuth said he was pleased with participation in the fast-track settlement. “In revealing the extent of collusion in the construction industry, the commission’s fast-track settlement broke up existing cartels and created awareness of collusive practices in the industry. Embedding a competitive culture will be critical to bringing down the costs of future infrastructure investments and will incentivise firms towards innovation and efficiency in future projects,” said Ramburuth.

ANC spokesman Jackson Mthembu said the ANC was aware tthe matter had still to be filed with the Competition Tribunal “and we trust that process will confirm an order with a settlement commensurate with the acts committed”. “While the ANC welcomes this ruling, the ANC calls upon the Competition Commission to initiate a process similar to the settlement process of the construction industry to include other industries so as to fully assess the extent of the problem of bid-rigging and collusion.” “It is unfortunate that these companies were only prepared to make full disclosure as a result of a plea bargain that saw them get fined lesser fines than they would have been if prosecuted,” said Mthembu. DA spokesman for economic development Kenneth Mubu said the party also welcomed the settlement. “ These penalties should serve as a warning to any companies considering engaging in anti-competitive behaviour,” said Mubu.

Source: www.iol.co.za

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ANC: Let watchdog probe other sectors

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