The Competition Tribunal has approved a settlement agreement in terms of which construction company Group Five will receive immunity for cooperating with the Competition Commission’s investigation into the construction industry and disclosing its participation in 15 construction projects as a result of the Construction Industry Fast Track Settlement process.

In terms of the leniency application heard this week, Group Five has disclosed its participation and has been given immunity for the Durban International Convention Centre project, the N17 Link Road to Soweto project, the Northern Waste Water Treatment Works project, the R102 to New Airport project, the Main Road 577 project and the Renault Motor Company project.

Additionally, Group Five has also received immunity for the Dwaalboom Cement Works Pre-Heated Tower project, the Green Point Stadium project, the Olifantspoort water project, the Anglo Platinum housing project, the Khangela Bridge and Bogoso gold mine projects, the Rio Tinto QMM Minerals project, as well as the Sappi Amakhulu and Gauteng Freeway Improvement projects.

BACKGROUND
In February 2009, the commission initiated a complaint into alleged collusive conduct in the construction of the 2010 FIFA World Cup stadia. The investigation considered alleged prohibited practices relating to collusive conduct in the construction of stadiums for the 2010 FIFA Soccer World Cup against Group Five, Grinaker-LTA, Basil Read, WBHO Construction, Murray & Roberts, Stefanutti Stocks, Interbeton Abu Dhabi and Bouygues Construction SA.

Following applications for immunity, the commission in September 2009 initiated a complaint with regard to price fixing, market allocation and collusive tendering conduct in respect of construction projects.

The same year, Group Five applied for leniency in respect of 61 prescribed and nonprescribed prohibited practices.
 

In February 2011, the commission invited companies to take part in the Construction Fast Track Settlement process.

Fifteen construction companies paid settlements amounting to just over R1.4-billion.