Construction firms face prosecution over World Cup Stadiums

01 Feb 2016 | Admin Author

South Africa's top construction firms colluded over contracts to build and revamp stadiums for the 2010 World Cup, the Competition
Commission heard on Wednesday, paving the way for possible prosecution.

The commission said dozens of firms colluded over the mega projects, in some instances allocating tenders among themselves and reaching deals agreeing on profit margins.

South Africa poured R20 billion into the construction and refurbishment of 10 stadiums to be used for the showpiece soccer tournament.

Five of the venues, including the 45 000 seater Nelson Mandela Bay Stadium in Port Elizabeth, were built from scratch.

Twenty-one companies have admitted wrongdoing and have paid settlements totaling R1.4 billion.

But the commission said Murray & Roberts, Group Five, WBHO, Basil Read and Stefanutti Stocks have denied collusion.
Murray & Roberts have been granted leniency.

Competition Commission spokesperson Mava Scott said the companies in question have denied collusive tendering, but that the Commission has evidence they were involved in such behaviour.

He said they face collusion charges and that the matter has been referred to the Competition Tribunal for adjudication.