Cost of rigged construction projects much higher than expected

01 Feb 2016 | Admin Author

Economic Development Minister, Ebrahim Patel says the total value of rigged construction industry projects being investigated by the Competition Commission, is much higher than expected at R47b

Speaking in parliament on Tuesday during debate on his budget vote, Patel said 300 cases of collusion and price-fixing had been identified by the commission.

Patel said 18 construction companies, including the top six firms, have now confessed and were in discussions on settlements with the competition authorities.

He said the Competition Commission was looking into various projects, including the building of Soccer City in Johannesburg and the Cape Town Stadium.

Patel said government was determined to eradicate cartels which used taxpayers' money to line their own pockets.