Commenting on the recent R1.46bn combined fine by the Competition Commission on 15 major construction firms for 'rampant' collusive tendering in projects between 2006 and 2011, Neil Gopal, CEO of SAPOA says, "We disapprove of anti-competitive behaviours. We trust this collusion has now ceased and is in the past."
In a fast-track disclosure process, the commission had applications for settlement from 21 companies, revealing collusion or anticompetitive behaviour in over 300 projects, public and private. The value of these projects is estimated to total R47bn.
"Collusion represents a negative impact for our members in the form of escalated development costs and reduced yields, with knock-on impacts for demand in the economy and the growth of the property sector," says Gopal.
He adds that SAPOA is unable to remedy the losses potentially suffered by its members but will continue to lobby regulators, like the Competition Commission, to ensure these practices are eradicated from our economy.
