Sanral must take legal action against construction companies implicated in collusion
10 March 2015
The DA calls on the Chairperson of the Portfolio Committee on Transport, Dikeledi Magadzi, to summon South African National Road Agency Limited (Sanral) CEO, Nazir Alli, to appear before the Portfolio Committee of Transport and clarify what the delays are in taking legal action against the 12 companies implicated in bid-rigging by the Competition Commission.
Sanral has failed to take decisive action that will see these companies brought to book, this despite the Competition Commission's findings that the companies were involved in bid-rigging on tenders relating to the Gauteng Freeway Improvement Project (GFIP).
While the companies involved agreed to pay proposed penalties amounting to a total of R1.46 billion, further legal action would send a strong message to construction industry bigwigs who are complicit in the widespread collusion in the industry. These questionable actions of the companies involved must compel Minister Dipuo Peters and the Sanral CEO to take swift and decisive action.
According to the Competition Act of 1998, restrictive horizontal practices are prohibited. Section 4(1)(b) of the Act states the following:
"an agreement between, or concerted practice, by firms, or a decision by an association of firms, is prohibited if - it involves collusive tendering".
Any trade practice that undermines a competitive economy cannot be tolerated. Sanral cannot delay any further on this issue. It is of utmost importance that this matter is addressed to ensure that companies who conduct their business in this disreputable manner are dealt with. The Minister and Sanral's dithering on this matter can only be seen as reluctance to deal with those who abuse millions of rands of taxpayer's money.
The DA will continue to pursue this issue to ensure that monies that were unfairly allotted to these companies is recouped where possible.
Statement issued by Manny de Freitas MP, DA Shadow Minister of Transport, March 10 2015
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