Construction firms in 2010 World Cup collusion cough up R117m

Companies that colluded around Fifa World Cup Stadium Projects, include WBHO Construction, Group Five & Murray & Roberts Holdings.

FILE: Construction at the Greenpoint stadium in Cape Town. Picture: EWN.

CAPE TOWN - Construction companies found to have been involved in collusive tendering while building stadiums for the 2010 Fifa World Cup have paid R117 million to the National Revenue Fund.

This forms part of an agreement reached by government for the Voluntary Rebuilding Programme, which seeks to bring about transformation within the construction sector.

The settlement agreement will see companies pay a total of R1.5 billion towards developmental projects.

Companies that colluded around Fifa World Cup Stadium Projects, include WBHO Construction, Group Five, Murray & Roberts Holdings and Steffanutti Stocks.

Those and others met secretly to allocate tenders.

Now an agreement with government forces them to pay back into developmental projects.

The next payment is expected in July.

Economic Development Minister Ebrahim Patel said: “Developing smaller black-owned construction companies that will result in black-owned companies with a market value of roughly R5 billion by 2024.”

He adds that an Industry Sector Summit will be convened within the next four months to include a wider group of companies in a bid to promote transformation and grow the sector.

(Edited by Winnie Theletsane)