Aveng CEO to resign after ‘very taxing’ construction collusion probe

2013-08-21 12:32

Construction firm Aveng Ltd has said its chief executive would resign at the end of this month, after steering the company through an industry-wide probe where regulators found massive price fixing.

Aveng, South Africa’s largest building firm by revenue, said in a statement today Roger Jardine had decided to step down and Financial Director Kobus Verster will take over as acting chief executive until a permanent replacement is found.

In June, the Competition Commission handed down fines totalling R1.46 billion to 15 construction companies, including Aveng, for bid rigging on projects dating back to 2006.

Aveng agreed to a fine of R307 million to be paid in three installments over two years.

Jardine, who joined the company in July 2008 as chief executive officer, had previously served in government posts.

“The Competition Commission’s investigation process has been personally very taxing, particularly as I have had to deal with matters that occurred before my appointment and of which I had no personal knowledge,” Jardine said in the statement.

“I had a duty as CEO to see the group through this process,” he said, adding the performance of the company’s South African construction unit had been a “major disappointment”.

Shares of Aveng have lost 48% of their value since Jardine took over, undeperforming a 33% decline in Johannesburg’s index of construction and materials companies over the same period.

Jardine’s overall compensation for 2009 to 2012 totalled R21.7 million, according to Reuters calculations, including salary, bonus and other compensation.

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