The Competition Tribunal on Wednesday heard four settlement agreements between the Competition Commission and South African construction companies, which disclosed that they were involved in collusive activities with regard to cover pricing and tender agreements.
On February 1, 2011, the commission had invited construction firms allegedly involved in collusive conduct to engage in settlements. The invitation was also open to firms to apply for leniency in terms of the Corporate Leniency Policy.
In an email interview, consultant Kasturi Moodaliyar told Engineering News Online on Thursday that certain companies had responded to the commission’s Construction Fast Track Settlement Process, which was launched in February 2011 and completed in July 2013, resulting in 15 consent agreements and a collective administrative penalty of R1.47-billion, paid by the participating firms.
In the first case heard by the tribunal on Wednesday, the tribunal confirmed a settlement agreement between the commission and construction company G Liviero & Son Building, granting the company conditional immunity from prosecution.
G Liviero had applied for leniency in respect of two nonprescribed prohibited practices. This refers to cartel conduct that ceased after November 30, 1998, but more than three years before the complaints were initiated. G Liviero disclosed its particpation in allegedly agreeing on cover pricing in relation to two projects.
The tribunal also heard the settement agreement between the commission and Giuricich Bros Construction, as well as between the commission and Vlaming. In exhange for conditional immunity, both companies agreed to cooperate with the commission’s investigation and disclosed their participation in the alleged collusion.
“They will, therefore, not pay any fines for cooperating with the Competition Commission in terms of their Corporate Leniency Policy,” Moodaliyar said.
Giuricich allegedly colluded on three tender projects, while Vlaming was alledgedly involved in one tender project.
Meanwhile, JT Ross also agreed to cooperate with the commission’s investigation for conditional immunity, as it was allegedly involved in one tender project.
The tribunal requested further information from the JT Ross, which meant that its agreement would be finalised at a later date. The tribunal would then decide whether to confirm the agreement, refuse to confirm it or request that changes be made to it.