Competition Commission invites construction firms to settle.

The Competition Commission (the ‘Commission’) is investigating widespread anti-competitive conduct in the construction industry. As part of this process, it is implementing a “fast track settlement” for firms in the construction sector who have been party to collusive practices in bidding for projects in the public and private sectors.

• Collusive practices include instances where 2 or more parties:
• Agree which of them should win certain tenders
• Agree not to tender competitively
• Agree to insert similar qualifications in their bids
• Agree that a party submits a cover price / cover bid

The Commission has requested the Association to encourage our members and other  construction firms to apply for fast-track settlement with complete and truthful disclosure of information regarding collusion. In addition the firm must undertake to cooperate and cease anti-competitive conduct.  Upon complying with the requirements, the Commission will settle with participating firms with a reduced administrative penalty compared to the penalty if each transgression were to be prosecuted separately.

Firms in the construction sector are invited to respond to this invitation in order to settle their bid-rigging and collusive conduct by making an application to the Commission by no later than 15 April 2011 at 12:00 pm.  

The procedure, forms, and  substantive terms and conditions of the fast-track settlement process is set out in detail in the document “Invitation to Firms in the Construction Industry to Engage in Settlement of Contraventions of the Competition Act” available on the Commission’s website www.compcom.co.za . Alternatively, a copy can be obtained from the Commission’s Registry at 77 Meintjies Street, dti Campus: Block C, Sunnyside, PRETORIA or via email by writing to construction@compcom.co.za.

Should a firm fail to take advantage of this settlement procedure the Commission will prosecute and ask for the imposition of maximum penalties with respect to each project. Further, the Commission will advocate that Government cease conducting business with firms found guilty of collusion following a prosecution.

For any enquiries regarding the settlement process please contact Lemogang Moletsane on 012 394 3408, or by email, construction@compcom.co.za. To discuss further with the Association for advisory purposes, please speak to Brandon Abdinor on 031 266 7070.

Brandon Abdinor | Executive Director