Sanral to pursue legal claims against collusive contractors

2nd May 2014 By: Irma Venter - Creamer Media Senior Deputy Editor

South African National Roads Agency Limited (Sanral) CEO Nazir Alli confirms that Sanral remains firm in its intent to seek restitution from the local construction industry for collusion on a number of road projects, although the form of this restitution was “still to be discussed”.

“We will not leave it. We will pursue the matter.”

Alli emphasises that the construction industry must acknowledge that what it did was wrong, and that some form of restitution must be put in place.

He acknowledges, however, that it is proving a difficult process to precisely quantify the damages Sanral suffered through the process of collusive tendering.

Following a voluntary fast-track settlement process initiated by the Competition Commis- sion, 15 companies were in 2013 collectively fined R1.46-billion for collusive tendering on 140 projects valued at R47-billion.

By the beginning of March this year, the Competition Tribunal had issued more than 150 certificates to a number of bodies, includ- ing Sanral, to enable civil claims against construction companies that admitted to collusion in this process.

Alli says it is left to the construction industry to show how the matter may be redressed, since its members are to blame for “breaching the trust” between government and the industry.

“How do you build trust again?

“Our door is open. We will not forsake the industry,” he notes, however.

Alli says there is an implicit trust present in the procurement process of any design, product or project, and that there has been “a deadly silence on this breach of trust from most of us”.

“We put our own professions at risk when we try to make a quick buck,” he adds, commenting on the general construction environment. “We have to show each other a little bit more mutual respect. We are not asking anyone not to make a profit, but it has to be a fair profit.”