THE 15 construction companies collectively fined R1.46bn by the Competition Commission for collusion on contracts‚ including some relating to 2010 World Cup stadiums‚ could face further punishment from the Construction Industry Development Board (CIDB).
On Tuesday‚ acting board CEO Hlengiwe Khumalo told Parliament’s public works committee that the law allowed the board to investigate any construction company identified by other state institutions for possible breaches of the board’s code of conduct‚ and to apply appropriate sanctions.
Construction companies need to be registered with the board if they want to tender for government contracts. Permanent deregistration is one of the sanctions the board can apply to companies breaking its code.
Ms Khumalo said collusion was unacceptable and promised that "action will be taken”.
She said any sanctions applied to the companies would have to be commensurate with the extent to which the code was breached and the amount of money involved.
The law also provides for sanctions such as a warning‚ downgrading the contractor’s grading designation‚ a fine not exceeding R100‚000 restricting and/or prohibiting access to government contracts‚ and combinations of all of these.
Deputy Public Works Minister Jeremy Cronin said the collusion that led to the R1.46bn fine was "the tip of the iceberg”.
He said it was always assumed that corruption was mainly in the public sector‚ "but it is also massive in the private sector”. © BDlive 2013