DA flays immunity for tender price fixing cartels

The DA has called for the immediate halt on projects given to firms accused of colluding in the construction industry and for their assets to be seized – just like the raid on the Mpisanes. This comes amid speculation that more than 20 of the biggest construction firms linked to a tender price fixing cartel may escape prosecution thanks to a ruling in the Competitions Commission which allows for voluntary disclosure in return for immunity. However, the DA’s eThekwini caucus leader, Tex Collins said the National Prosecuting Authority should act against those implicated as they had done with uMhlanga business couple Shauwn and S’bu Mpisane.

This follows an early morning raid by the Asset Forfeiture Unit (AFU) on the Mpisane home last week which saw the couple’s properties and assets seized, amid allegations of fraud and corruption. “I am not in support of Shauwn Mpisane and have always maintained that the city should never have given her contracts, however I believe the law should be even-handed. “How can we make fish of one and fowl of the other? Why should she have her assets seized and contracts stopped while others get immunity from prosecution when they too face charges of fraud and corruption? The NPA must act equally when dealing with the same crime – regardless of who it is,” Collins said. Shauwn Mpisane welcomed the DA’s call on action against the cartel.

“The DA’s stance will go a long way towards assuring black businesses like me that the party is not inherently biased against them.” In response AFU head, Willie Hoffmeyr, rejected allegations by Mpisane that the unit was targeting black businesses. “We have always acted in all matters where a criminal investigation is close to being finalised and uncovered facts that support a case for asset forfeiture. “In serious economic crime cases, investigations usually take many years because of the complexity of the cases. In fact, the vast majority of economic crime cases in which the AFU has acted involves white businesses. Thus far the AFU has acted in 12 matters, which include corruption, where it has frozen assets of (many millions).

There are six cases involving mainly or exclusively white businesses, two Indian, two African businesses – of which Ms Mpisane’s company is the second and the other two involving foreign businesses – a German and a Rwandan business. On claims that the National Prosecuting Authority should seize the assets of those implicated in the construction cartel, well this cannot be done just yet due to rules within the Competition Commission which do not allow for disclosures to be admissible. In the Mpisane matter we used the same reasonable grounds which would apply to any arrest to secure the seizure order,” Hoffmeyr said. Mpisane is challenging the seizure of her assets as she believes the case against her is not only “nonsensical but also baseless”.