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The Commission has referred to the Competition Tribunal for confirmation as an order a consent settlement agreement it reached with a construction company, GVK-Siya Zama (Cape) (Pty) Ltd (GVK).
 
In terms of the agreement GVK has undertaken an administrative penalty of R6 038 852.00 (Six million, Thirty-Eight Thousand and Eight Hundred and Fifty-Two Rands. The company was charged with price fixing, market division and collusive conduct in the construction industry in contravention of the Competition Act.
 
In February 2008, GVK entered into an agreement with Group Five to collude in the tender issued by the Mediclinic Group. Group Five provided a cover price, higher than theirs, to GVK to tender for the construction of the Cape-Gate Mediclinic Hospital in Brackenfell, Cape Town.
 
GVK also entered into a collusive agreement with Neil Muller Construction (Pty) Ltd (NMC) in July 2010, and tendered for the Tygervalley Shopping Mall. NMC provided a cover price, higher than theirs, to GVK to tender for minor alterations and extensions towards the Tygervalley shopping mall.
 
GVK entered into another agreement with NM in December 2010, to tender collusively with regard to the tender issued by Akila Trading. NMC provided a cover price, which was higher than theirs, to GVK to tender for the construction of a new warehouse and office buildings project for Akila Trading.
 
This matter is one of the remainders of the construction cartels investigation which were initiated in 2009 with regards to the bid-rigging and collusion in the construction of the stadia for the 2010 FIFA Soccer World Cup. GVK did not apply for immunity in terms of the Commission’s Corporate Leniency Policy.
 

Issued by The Competition Commission of South Africa