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CIDB to ‘kick-start’ investigation into collusive firms

CIDB to ‘kick-start’ investigation into collusive firms

Photo by Duane Daws

10th September 2013

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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The Construction Industry Development Board (CIDB) is in the process of appointing an investigative team to “kick-start” an investigation into 15 construction companies that in June admitted to collusive tendering on several government contracts.

The industry body on Tuesday appeared before the Parliamentary Portfolio Committee on Public Works, in Cape Town, to have outlined to it the process prescribed by its regulatory framework to address collusion in the industry.

It also studied the consent agreements signed between the Competition Commission and the companies concerned, most of which were currently registered on the CIDB Register of Contractors, which grades and categorises contractors on their ability to carry out construction projects. 

The organisation stressed that its code of conduct for parties engaged in construction procurement prohibited contractors from engaging in collusive practices that had direct or indirect adverse impacts on the cost of the project to the employer.

In a statement released on Tuesday, CIDB acting CEO Hlengiwe Khumalo described collusion as “exclusionary”, with the capacity to undermine development and transformation in the construction industry.

She further confirmed that the companies would be investigated in terms of the CIDB code of conduct and the Construction Industry Development Regulations of 2004 as amended.

“We intend to follow the substance and process of the law as outlined in its prescripts in dealing with the collusion cases and do not wish to pre-empt the outcome of the formal inquiry,” she commented.

The Competition Commission announced in June that it had, following a Construction Fast-Track Settlement Process, fined 15 major construction firms a collective R1.46-billion for “rampant” collusive tendering related to projects concluded between 2006 and 2011.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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