M&R to blow whistle on any price-fixing

m&r to blow whistle on any price-fixing


murray & roberts (m&r) had taken a policy decision to report all anticompetitive behaviour it uncovered to the competition commission, the listed construction and engineering group said yesterday.

chief executive brian bruce said the group's objective was to be the "first through the door" to qualify for immunity in terms of the commission's corporate leniency programme.

bruce said during a presentation on the group's interim financial results that the aim of the policy was to protect m&r and its shareholders from paying a fine, but admitted it would have an impact on the group's competitors.

however, he said the company's competitors had the same opportunity as m&r to report anticompetitive behaviour to the commission.

bruce said, however, that m&r had "little evidence" of anticompetitive behaviour.

last june, the competition commission raided the offices of m&r's cape town iron and steel works (cisco), highveld steel and vanadium, and the steel industry association, and seized evidence to bolster a case aimed at busting steel price-fixing.

however, bruce said the group was "not worried" about cisco in regard to the commission's investigation.

last year the commission also launched investigations into alleged anticompetitive practices focused on building materials, and bid rigging by several companies in the construction sector.

bruce said anticompetitive behaviour involved decisions taken by individuals on collusive behaviour, and by association an organisation was guilty.

"this is a massive onerous obligation that sits on organisations like murray & roberts," he said.

m&r took appropriate action when it uncovered anticompetitive behaviour.

he said this could involve dismissing or disciplining individuals concerned, adding that some people were "innocent participants" while others were leaders and perpetrators.

bruce said that while m&r could dismiss the leaders, there was no penalty that could be imposed against an individual for anticompetitive behaviour unless fraud was involved.

if fraud was involved, m&r would press criminal charges against the individual.

meanwhile, bloomberg reported that bruce had said the gautrain rapid rail project linking johannesburg with or tambo international airport and pretoria might not be ready in time for the 2010 soccer world cup. he "shouldn't be surprised" if the project was not completed in time for the event next june.

yesterday, m&r shares lost 1.04 percent to r37. the construction and materials sector added 0.39 percent.