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Sanral claims R760m from colluding firms
The South African National Roads Agency Limited (Sanral) is claiming up to R760m in damages and overcharges from seven construction firms that colluded on projects including the Gauteng Freeway Improvement Project (GFIP) that cost more than R20bn.
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Sanral wants Murray & Roberts, Group 5, WBHO, Raubex, Basil Read, Stefanutti and Concor to pay up - three years after the Competition Commission found there was collusion.
The commission identified 300 cases in projects worth R47bn, but limited the scope of its investigations to 160 projects from early 2006 to late 2009. Fines totaling R1.46bn were given to 15 construction and engineering firms. Projects involved in the investigations included highway improvements, such as the Gauteng toll roads, the building of stadiums for the 2010 Soccer World Cup, the upgrading of airports, and the building of hospitals, dams, and bridges.
In 2013, Sanral said it intended to pursue the culpable firms for damages and had sought an independent assessment. However, the agency wanted to ensure it had a water-tight case. "We engaged experts such as economists and quantity surveyors, among others, to work on the quantification," spokesman Vusi Mona said yesterday.
Murray & Roberts said it had received civil summons from Sanral for a number of completed projects including a R562m claim jointly against Murray & Roberts, Concor, Stefanutti and WBHO for the Gauteng highway improvements. Other claims include R22m for the national road between Senekal and Vaalpensspruit jointly from Murray & Roberts, Concor and Group Five.
Murray & Roberts spokesman Eduard Jardim said the company was aware of the steps Sanral was considering. "Neither Murray & Roberts nor Concor executed any of the roadworks on the Gauteng Freeway Improvement Project, nor on the Senekal project. Murray & Roberts intends to defend these summonses," he said.
In a SENS announcement Raubex said it had received summons stating that Sanral was taking action to claim relief for damages suffered due to construction collusion. Raubex signed a consent agreement with the Competition Commission in June 2013 in which it admitted that it had engaged in collusive conduct on eight road projects and paid an administrative penalty of R58.8m.
Group Five spokeswoman Heidi Geldenhuys declined to comment. Basil Read spokeswoman Jenny von Ehrenberg said it could not respond last night.
Transport economist Andrew Marsay said the amount claimed by Sanral may seem small because Sanral could only claim money from construction firms based on evidence.
SA was experiencing one of its biggest construction booms at the time and Sanral had to take whatever price demanded from it. Sanral could only claim for "demonstrable" collusion, Marsay said.
Source: Business Day
Source: I-Net Bridge
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