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UCT a victim of construction cartel

UCT said it received a report about collusion in the construction of Graça Machel Hall.

FILE: UCT staff and students protest. Picture: Shamiela Fisher/EWN

CAPE TOWN - The University of Cape Town (UCT) says it received a report from the Competition Commission about collusion in the construction industry and will be pursuing the matter.

The commission is investigating collusion and tender rigging in the sector.

According to papers filed at the Competition Commission, the UCT project was subjected to an overarching collusive arrangement in the Western Cape, known as the "Cape Club meetings".

Several companies set up a group to share contracts for major construction projects in the Western Cape including Group Five, Murray & Roberts, Stefanutti Stocks and Aveng.

The projects included the R87 million Graça Machel Hall at UCT, Cape Town Stadium and the Berg River Water Project in Franschhoek.

In June, the commission announced that it reached a settlement with 15 companies involved in the rigging.

The companies agreed to pay a penalty of nearly R1.5 billion.

In their consent agreements, the companies admitted to anti-competitive behaviour.

The commission will now prosecute three firms which have not accepted the Competition Tribunal's settlement offer.

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