S.Africa’s construction sector to see further legal disputes - CNBC Africa

S.Africa’s construction sector to see further legal disputes

Southern Africa

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South Africa's construction sector to see more legal action regarding collusion. PHOTO: Getty Images

“We are in business to make money and therefore if anybody comes and curtails your participation, you are entitled to whatever action you want to take. We have been precluded from participating. We have not made the profits that we were supposed to be making, that’s why we want this restitution,” the Black Business Council’s Gregory Mofokeng told CNBC Africa.

“We are going to milk these guys dry. The fact of the matter is that there’s been a lot of misinformation out there to say that if you do take further action, these companies will go out of business and therefore there will be significant loss to capacity – we don’t think so.”

The Black Business Council is in the process of applying for certification by the Competition Commission that will enable it to pursue civil claims against the companies involved in bid rigging, in the construction sector.


“We think that more can be done because this was a pure criminal act. Our members have been effectively precluded from participating in these projects therefore we do want restitution for what happened to them,” Mofokeng explained.

“The process starts with the Competition Tribunal where we will obtain the Section 65 certificate and after we obtain that, we will then go to the High Court to prove the damages that have been suffered by our members.”

Mofokeng added that people that have been harshly done by have a right to pursue damages and that the process now lies with issuing the Section 65 certificates.

“We were in touch with the Competition Tribunal to check how far they are with the process of issuing the Section 65 certificates – two have already been issued so far and we will be putting pressure on the tribunal to issue all of the certificates,” he said.

“At the end of the day people must be compensated financially for losing out on these projects, and obviously we want to see significant changes happening in the market.”