CT goes after WBHO over collusion
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25-02-2015
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The Business Report
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The City of Cape Town has lodged a R428 million civil damages claim against Wilson Bayly Holmes-Ovcon (WBHO) for colluding on the tender to build the Cape Town Stadium.
The city's claim is believed the first claim following the conclusion of the Competition Commission's settlement process after widespread collusion was discovered in the construction industry. Fifteen firms have already paid penalties totalling R1.46 billion for breaching the Competition Act.
During the commission's investigation, WBHO admitted that it had had an agreement with construction firm Group Five in 2006 to provide with a cover price so that Group FIve would not win the tender for the Cape Town Stadium. The tender was awarded to WBHO and Murray & Roberts, who were helming a joint venture. The stadium was being built for the 2010 World Cup.
WBHO chief executive Louwtjie Nel said that the firm would be defending against the claim as it believed that the City of Cape Town had not suffered any damages.
"Obviously it's very sensitive but we're confident of our case. We don’t think shareholders should be concerned about it and that is why we have not made any provision for it," Nel said in the Business Report.
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