OUTCOME OF TRIBUNAL HEARING FOR WEDNESDAY, 19 OCTOBER 2016
|Type of matter||Parties involved||Competition Commission’s recommendation to Tribunal|
Competition Commission and Aveng (Africa) (Pty) Ltd
Confirmation of consent agreement
Competition Commission And Geomechanics CC; Geomech Africa (Pty) Ltd
Confirmation of Settlement Agreement
Competition Commission and Concor (Pty) Ltd; Murray and Roberts Ltd; Raubex (Pty) Ltd; WBHO Construction (Pty) Ltd; Basil Read Holdings (Pty) Ltd; Stefanutti Stocks Holdings Ltd; Aveng (Africa) Ltd
Tribunal asks for additional information in Aveng and CC consent agreement matter
The Competition Tribunal, which was asked to confirm a consent agreement between Aveng and the Competition Commission, has asked for additional information from the Commission at today’s hearing.
The agreement would give Aveng immunity from an administrative penalty.
Aveng was the first company to apply for immunity when the Commission launched its Fast Track project on 1 February 2011, and it concluded an agreement with the Commission for the projects listed below. The Fast Track process by the Commission gave companies in the construction industry an opportunity to settle with the Commission on favourable terms.
In return for conditional immunity Aveng disclosed its participation in collusive tendering in a number of projects between 2004 and 2007. The Commission now confirms that Aveng has complied with the requirements set out in the leniency policy.
The projects are: the development of land for the Goedgevonden crushing project; BKM Processing Plant Project; BKM Export Rail Line Project; Tambothi Project; Pany Cove block of flats in Mosselbay; Komati Chimney Project; rehabilitation of N2 Gamtoos to Van Staden Bridge; rehabilitation of national road Colesberg to Springfonteing; a project at South Deep Mine; Hartebeesfontein Water Works Project and Transnet Railway Maintenance Tenders.
Tribunal confirms a settlement agreement involving Geomechanics CC and Geomech Africa (See attached document)
The Competition Tribunal has confirmed a settlement agreement between the Competition Commission and Geomechanics CC and Geomech Africa in which they have agreed to pay an administrative penalty of R1 650 503,18. The charges relate to a number of prohibited practices, including two Gautrain Rapid Rail Link projects and deals made involving the Lesotho Highlands project.
The Commission in its filing notice found that these respondents and other companies in the construction sector were party to a number of ad hoc agreements including:
- Gautrain Rapid Rail Link Project – Section DP6 – Despite Bombela refusing to allow the respondent and others to form consortiums, two agreements were allegedly concluded: including R50-million cover price to be awarded to Dura-Geomech Africa (DGS) if it was awarded the tender for the job, and the provision of cover prices by Geomech Africa and two other companies so DGS joint venture could win the tender.
- Braamhoek dam grouting project – DGS entered into an agreement with two other companies to ensure that a particular construction company could win the tender.
- Lesotho Highlands Project – Six companies including Geomechanics colluded to ensure one of them would be awarded a tender and is linked to the Gautrain project agreement.
The respondents confirmed they have contravened the Competition Act.
Additional information required in the Concor complaint
The Competition Tribunal has asked for additional information from the Commission with regards to the complaint brought by the Competition Commission against construction companies Concor (Pty) Ltd and Murray and Roberts Limited.
Murray and Roberts was granted conditional immunity by the Commission, with same immunity being extended to Concor, which was bought by Murray and Roberts in 2006.
The Commission was not able to conclude a consent agreement with Concor related to the projects and seeks a declaratory order confirming Concor contravened the Competition Act section 4 (1)(b)(iii) in relation to the given projects.
The projects involved are: Upgrading of National Route 12, Beefmaster Intersection to Bloemhof; rehabilitation N11 Amersfoort route to Ermelo; upgrading of National Road Tsitsikama to Witelsbos; Ngezi Phase 1 Civil Works Project; and a project at Tati Activox in Botswana.
Communications: Competition Tribunal
Tel (012)394 1383
Cell: +27 (0) 73 007 5603
On Behalf Of:
Registrar: Competition Tribunal
Tel: (012) 394 3355
Cell: +27 (0) 82 556 3221