Tribunal clears WBHO of tender rigging
The Competition Tribunal has dismissed a collusive tendering case against WBHO Construction. In its 2015 referral to the tribunal, the Competition Commission alleged that WBHO had colluded with Group Five Construction by fixing contractual conditions related to the N17 link road between New Canada and Soccer City, says a Business Day report.
It alleged the two companies had agreed on a preferred set of contractual conditions for the Sanral tender. It alleged they met in July 2006 under the auspices of the SA Forum of Engineering Contractors.
‘On the commission’s version, the companies met to discuss their dissatisfaction over the tender’s contractual conditions. They agreed on how Sanral should restructure these with the effect of assigning less risk to the contractors and more risk to Sanral,’ the tribunal said.
While Group Five applied for and was granted leniency, WBHO contested the allegations.
The tribunal said the commission had failed to prove there was an agreement between the companies to align their bids.
‘There may well be situations in which attending a meeting to discuss the difficulties parties have with a tender should be considered illegal, but the facts of this case do not support this conclusion,’ it said.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
