Pictured: Tumi Dlamini, executive director of MBSA, says MBSA further supports the construction firms’ cooperation with the Competition Commission to make the full and truthful disclosure of bid rigging that took place in the industry

The Construction Industry Development Board (cidb) has welcomed the announcement by the Competition Commission that a settlement has been reached following admission of guilt by 15 of the companies accused of collusion in the construction industry. This paves the way for the cidb to initiate its own process of investigation and inquiry into the firms’ conduct, in terms of Section 28 of the Construction Industry Development (CID) Regulations of 2004, as amended, and the cidb Code of Conduct.  The cidb now awaits the report of the Competition Commission and decision of the Competition Tribunal, which are crucial and pivotal to its investigation and enquiry. It is also in the process of constituting an investigation team and a presiding officer for the cidb enquiry.

The cidb acting CEO, Hlengiwe Khumalo, has commended the Competition Committee on the case, which has brought to light this undesirable conduct with the potential to entrench itself insidiously within the industry. She said collusion by its nature is exclusionary and therefore has the impact to undermine development and transformation that is necessary within the construction industry. The cidb is established in terms of the CIDB Act 38 of 2000 to regulate the construction industry and promote its development, including the development of the emerging sector.

Contrary to media statements the cidb has not yet decided on the nature of sanctions that will be imposed as this would be pre-empting the outcome of the formal inquiry.

In addition Master Builders South Africa has welcomed the conclusion of the Construction Fast Track Settlement Process launched by the Competition Commission in February 2011 as “a first step in addressing collusion and anti-competitive practices within the construction industry”.

Tumi Dlamini, executive director of MBSA, says MBSA further supports the construction firms’ cooperation with the Competition Commission to make the full and truthful disclosure of bid rigging that took place in the industry.

“We have also noted and welcome the positive reaction of the markets to the fast-track settlement process,” she states.

Dlamini says the construction industry remains one of the key sectors with a significant role to play in meeting the country’s infrastructure developmental objectives in terms of the National Development Plan and further in terms of the Strategic Infrastructure Projects.

“As a representative trade association within the building and construction industry, Master Builders South Africa is committed to promoting equitable trading practices, anti-corruption practices as well as transparency and ethical businesses practices in the industry. We will use the opportunity of the finality of the fast track settlement process to strengthen our efforts to increase greater awareness for compliance with relevant legislative requirements, in particular, the Competition Act of South Africa.

“We will endeavour to work towards increasing a competitive culture supporting the emergence of new contractors and supporting the existing emerging contractors to participate meaningfully in the South African economy and thereby contributes to the growth and development of the country.

“MBSA intends to collaborate with the public sector to ensure that both the private and the public sectors work in a sustainable and mutually beneficial partnership towards the realisation of the developmental goals of the country,” adds Dlamini.