The Competition Tribunal on Monday issued an order imposing an administrative penalty of R900 000 on construction company Giuricich Coastal Projects for cover pricing in 2008.
The Competition Commission said Mondi had invited three construction firms – Giuricich, Grinaker and Stefanutti Stocks – to submit a design and construct proposal for the construction of the Mondi Reel Handling project, at the Merebank mill, in KwaZulu-Natal.
While Stefanutti chose not to ender for the project, the other two companies did.
According to the complaint brought by the commission, the executives of the two rival building companies discussed a proposed contract for a customer in which Giuricich agreed to submit a tender higher than that of Grinaker, ensuring that Grinaker be awarded the contract.
The project was awarded to Grinaker, which has been given conditional immunity for the contravention by the competition authorities.