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Construction companies probed in 'fixing' scandal

Top construction companies are being investigated for 'fixing' state contracts worth billions of rands.

Cape Town Stadium
construction,Construction Scandal,Bid Rigging,construction giant,Murray and Roberts,Group Five,WBHO,Concor
Local Business

CAPE TOWN - The Competition Commission said on Monday if construction companies are found guilty of collusion, they could face a penalty totaling 10% of their profits.

The Hawks and the commission are investigating a number of top construction companies who are alleged to have illegally fixed state contracts worth billions of rands.

Engineering and construction companies including Murray & Roberts, Group Five, Concor and Wilson Bayly Holmes Ovcon (WBHO) were implicated in the bid rigging scandal.

Some of the 'fixed' projects include the FNB Stadium in Soweto, Cape Town Stadium, the Nelson Mandela Bridge in Johannesburg and the Gautrain.

So far 20 firms have confessed to irregular conduct in more than 300 projects.

The commission's Trudi Makhaya said the outcome of the probe will take some time.

“We’ve had applications from over 20 companies that have come forward with evidence which we still need to validate.”

According to a report in the City Press newspaper on Sunday, at least 11 affidavits have detailed a record of formal kickbacks to those who were implicated in the scandal.

A price fixing racket has also been submitted to the Hawks and the National Prosecuting Authority.

The Hawks' Paul Ramoloko said, ”We do have an investigation in that direction.

"However, we are not in a position to say who is being implicated and how long we have been working on the case for.”

The commission is expected to hand over its report to the Competition Tribunal.

CAPE TOWN TO TRY AND RECOVER FUNDS

The City of Cape Town confirmed that it will try and recover money from construction companies, if they are found guilty of collusion in the building of the Cape Town Stadium.

Cape Town Mayoral committee member Grant Pascoe said if companies are in the wrong, the city will take action.

“The city will obviously work on the evidence presented to it and after the completion of this investigation we will consider our options.

"We will not rule out that civil action be taken to recover the money.”

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