Sanral takes aim at collusion-accused construction companies

10th May 2016

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

Font size: - +

The South African National Roads Agency Limited (Sanral) has lodged civil damages claims with the Gauteng Local Division High Court against the construction firms the competition authorities had investigated for collusive conduct.

Seven construction firms and joint ventures had been served papers for claims of between R600-million and R760-million for work undertaken nationwide, including the Gauteng Freeway Improvement Project (GFIP).

Sanral said it had suffered damages and overcharges as a result of the companies’ alleged collusive conduct.

While Sanral did not disclose all the defendants it was targeting, Murray & Roberts (M&R) and Raubex this week confirmed that they had received civil summonses from Sanral.

M&R averred it would defend the summonses and pointed out that there were certain road works listed that it did not execute.

This followed an ongoing, years-long process by the Competition Commission and Competition Tribunal that saw 15 major construction firms fined a collective R1.46-billion for “rampant” collusive tendering related to projects concluded between 2006 and 2011.

In 2013, 21 firms in the construction industry had submitted applications to the commission under a ‘Construction Fast-Track Settlement Process’, which covered instances of collusion or anticompetitive behaviour in over 300 public- and private-sector projects worth an estimated R47-billion.

The Organisation Undoing Tax Abuse (Outa) on Tuesday slammed what it says was a mere “slap in the face” response by Sanral, with chairperson Wayne Duvenage stating that it took Sanral “nearly three years” to come up with a “miniscule calculation” of up to R760-million in a process that was “vague and lacking in detail”.

“This adjustment makes little difference to the estimated R10-billion to R11-billion overpriced construction costs for GFIP,” he said.

Sanral’s move followed “months of hard work” in an effort to quantify the damages suffered by the roads agency,” Sanral spokesperson Vusi Mona said in a statement this week.

“We had to be thorough in our assessment of the damages and were not going to be rushed into this action ill-prepared.

“Some of our detractors doubted our intention to file for damages, accusing us of delays, with some going to the extent of suggesting the agency was colluding with the industry.”

Edited by Creamer Media Reporter

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION