Aveng to pay R128,9m collusion fine

Construction company Aveng will pay a fine of R128,9-million relating to two cartels in the wire mesh and rebar business, the Competition Commission said on Wednesday.

The commission said in a statement it “… has also settled with Aveng (Africa) Ltd on two cartels in wire mesh and reinforcing steel bar in which its Steeldale subsidiary was involved”.

Aveng will, in terms of its settlement, pay an administrative penalty of R128,9-million.

This was equivalent to 8% of Steeldale’s annual turnover for the 2008 financial year.

Aveng must also cooperate with the commission in its prosecution of the other companies involved.

Last year, Aveng had to pay a fine of R21,9-million relating to anti-competitive practices in its roof bolt division, Duraset.

Pilings
The commission had also referred a collusive conduct case involving pilings to the Competition Tribunal.

The commission said it “has today referred a case of collusive conduct in pilings and related activities, which are a crucial component of many large construction projects”.

The case of collusive tendering, price fixing and market allocation in the pilings market was against Grinaker-LTA (an operating group of Aveng), Esorfranki, Rodio Geotechnics Dura Soltanche Bachy, Geomechanics and Diabor.

Grinaker-LTA had applied for and was granted conditional immunity, so the commission was not seeking a penalty against it.

However, it wanted a penalty of 10% of annual turnover for the other implicated firms.

“In terms of formal arrangements among themselves the respondents allocated tenders/customers/projects between themselves and fixed tender prices,” the commission said.

The collusion may have taken place on the Moses Mabhida Stadium piling project, the Coega Harbour diaphragm wall project, the Gautrain, and the Lesotho Highlands Water project. — Sapa

Staff Reporter
Guest Author
Advertisting

Salie-Hlophe accuses Goliath of lying and racism

In response to Goliath’s gross misconduct complaint, Salie-Hlophe says Goliath has ‘an unhealthy obsession with my marriage’

Treasury is still seeking SAA funds

The government has committed an additional R2-billion to the airline, but has yet to pay it out

‘There were no marks on his neck’, Neil Aggett inquest...

The trade unionist’s partner at the time he was detained at John Vorster Square says she now believes his death was not a suicide
Advertising

Press Releases

Boosting safety for cargo and drivers

The use of a telematics system for fleet vehicles has proved to be an important tool in helping to drive down costs and improve efficiency, says MiX Telematics Africa.

Silencing the guns and firearms amnesty

Silencing the guns and firearms amnesty

Gender-based violence is an affront to our humanity

Gender-based violence is an affront to our humanity

UK-Africa investment summit 2020: Think Africa Invest SA

UK-Africa investment summit 2020: Think Africa Invest SA

MTN unveils TikTok bundles

Customised MTN TikTok data bundles are available to all prepaid customers on *136*2#.

Marketers need to reinvent themselves

Marketing is an exciting discipline, offering the perfect fit for individuals who are equally interested in business, human dynamics and strategic thinking. But the...

Upskill yourself to land your dream job in 2020

If you received admission to an IIE Higher Certificate qualification, once you have graduated, you can articulate to an IIE Diploma and then IIE Bachelor's degree at IIE Rosebank College.

South Africans unsure of what to expect in 2020

Almost half (49%) of South Africans, 15 years and older, agree or strongly agree that they view 2020 with optimism.