Infrastructure department 'disturbed' by construction sector collusion

The Gauteng Department of Infrastructure Development says it is disturbed by revelations of cartel behaviour within the construction sector.

MEC for Infrastructure Development Qedani Mahlangu said the revelations of price collusion and bid rigging had serious implications for the work of the department, which includes the construction of schools, hospitals and community centres.

“As the department responsible for the construction and maintenance of socio-economic infrastructure in the province, we are deeply disturbed by revelations of cartel behaviour within this sector, whose services we procure on an on-going basis,” said Mahalngu.

The department noted the penalties amounting to R1.46 billion imposed by the Competition Commission on 15 major players in the construction sector on Monday.

During her budget vote at the end of May, Mahlangu indicated her department was working with other arms of government to consolidate their collective response.

She said the department was also considering the option of seeking admission as an intervener in the upcoming Competition Tribunal process for the confirmation of the settlements entered into by the firms involved.

“This process would allow government the opportunity to be heard as one of the affected parties, but also inform our comprehensive response going forward.”

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