The Construction Industry Development Board (cidb) has welcomed the announcement by the Competition Commission that a settlement has been reached following admission of guilt by 15 of the companies accused of collusion in the construction industry. This paves the way for the cidb to initiate its own process of investigation and inquiry into the firms’ conduct, in terms of Section 28 of the Construction Industry Development (CID) Regulations of 2004, as amended, and the cidb Code of Conduct.

The cidb now awaits the report of the Competition Commission and decision of the Competition Tribunal, which are crucial and pivotal to its investigation and enquiry. It is also in the process of constituting an investigation team and a presiding officer for the cidb enquiry.

The cidb Acting CEO, Ms Hlengiwe Khumalo, has commended the Competition Committee on the case, which has brought to light this undesirable conduct with the potential to entrench itself insidiously within the industry. She said collusion by its nature is exclusionary and therefore has the impact to undermine development and transformation that is necessary within the construction industry. The cidb is established in terms of the CIDB Act 38 of 2000 to regulate the construction industry and promote its development, including the development of the emerging sector.
Contrary to media statements the cidb has not yet decided on the nature of sanctions that will be imposed as this would be pre-empting the outcome of the formal inquiry.