Business Leadership South Africa (BLSA) has called on the companies penalised by the Competition Commission for anticompetitive behaviour to reveal what action had been taken against those involved and what provisions were in place to prevent future collusion.
Earlier this week, the Competition Commission levied a collective R1.46-billion fine on 15 of the 18 construction companies found liable for collusive tendering between 2006 and 2011.
Wilson Bayly Holmes-Ovcon was slapped with the largest fine at R311.29-million, while Murray & Roberts, Stefanutti Stocks and Aveng were fined R309.05-million, R306.89-million and R306.57-million respectively.
Basil Read and Haw & Inglis followed with a penalty of R94.94-million and R45.31-million respectively, while Raubex received a R58.83-million penalty.
Other companies fined included G Liviero with a R2.01-million penalty, Giuricich with R3.55-million, Hochtief with R1.32-million, Rumdel R17.13-million, Tubular Technical Construction with R2.63-million, Vlaming with R3.42-million, Esorfranki with R155 850 and Norvo Construction R714 897.
An agreed penalty had yet to be finalised with Group Five, Construction ID and Power Construction.
BLSA condemned cartel behaviour, stressing that it went against the values of the association and defied the ambitions of the National Development Plan and the principles of the BLSA Code of Good Corporate Citizenship, the organisation said in a statement on Thursday.
“Anticompetitive behaviour retards economic growth and our ability to compete effectively in the global economy. This behaviour is contrary to South Africa’s growth ambitions and the vision to develop a more inclusive and thriving economy,” the organisation, which represents South African big business and major multinational companies, said.
Following an executive committee meeting on Wednesday, it was agreed that the BLSA would ask the implicated companies to indicate what action their boards have taken against the individuals implicated and what processes had been initiated to ensure future conduct was aligned with the Constitution and laws of South Africa and the BLSA code of conduct.
The association also requested members to develop a set of guidelines, effectively implement the BLSA code of conduct and take appropriate action in line with the code where necessary.