Govt, construction firms agree to ‘speed up transformation’

Construction companies colluded in 2006 to allocate tenders on Fifa World Cup Stadium Projects and agreed on 17.5% profit margin.

FILE: Construction on the Gautrain line. Picture: JP du Plessis/Eyewitness News

CAPE TOWN - Government says that agreements reached with seven construction companies will speed up transformation in the sector.

Construction companies including Group Five, WBHO, Basil Read and Stefanutti Stocks colluded in 2006 to allocate tenders on Fifa World Cup Stadium Projects and agreed on a 17.5% profit margin.

Economic Development Minister Ebrahim Patel says government reached an agreement with the seven companies in October last year.

“The financial contributions by the companies of R1.5 billion for developmental projects, which is in addition to the R1.4 billion in competition penalties previously imposed by the Competition Tribunal.”

(Edited by Winnie Theletsane)