Group Five faces collusion claim

By Drum Digital
17 March 2015

A case of collusive tendering against construction company Group Five was referred to the Competition Tribunal on Tuesday, the Competition Commission said.

The collusive tendering was between Group Five, WBHO Construction, and Concor -- a subsidiary of Murray and Roberts, commission spokesman Mava Scott said.

The tender was for rehabilitation of a section of the N5, between Senekal and Vaalpenspruit, in the Free State.

"Group Five had bilateral collusive agreements with WBHO and Concor respectively in terms of which Group Five would submit a bid price lower than those submitted by WBHO and Concor in order to ensure that Group Five won the tender," Scott said.

He said the commission's investigation found sufficient evidence that Group Five colluded with WBHO and Concor in the Senekal project.

The commission wanted the tribunal to impose a maximum penalty of 10 percent of Group Five's annual turnover.

An extensive Competition Commission investigation over a few years uncovered widespread collusion in the construction industry.

Many companies entered into settlement agreements with the commission as a result. Others denied collusion and were referred to the tribunal for adjudication.

-SAP

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