Construction corruption must stop
Minister Ebrahim Patel says govt. must clamp down on price-fixing and collusion.
JOHANNESBURG - Economic Development Minister Ebrahim Patel said on Thursday government must clamp down on collusion and price fixing in the infrastructure sector before the next plan is rolled out.
Patel said billions of rands were lost through major projects such as the building of the 2010 Soccer World Cup stadiums and roads in South Africa's biggest cities.
The minister was addressing delegates at a construction and project management conference currently underway in Midrand.
He revealed on Thursday the competition commission has already received about 400 confessions of guilt from the major players in the industry.
Patel said they are hopeful an integrity pack to be signed by the CEOs of major civil engineering companies will curb the collusion and price fixing.
"In which they commit to creating a culture in their organisation that doesn't encourage collusion and price fixing."
Ugandan Works Minister Abraham Byandaala, who was also attending the conference, said he was surprised by the extent of the problem in South Africa.
"We have received the news of this situation and obviously we're shocked."
The conference will resume on Friday where Public Enterprises Minister Malusi Gigaba is due to make an address.