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Stadium construction probed

Cape Town - The Hawks are probing allegations that the City of Cape Town was overcharged for Cape Town stadium through collusion by construction companies, the Cape Argus reported on Monday.

The Competition Commission had also advised the city it would hold a public tribunal to hear the allegations.

The two-pronged investigation followed the commission's announcement in 2011 that the stadium was one of many construction projects being probed for alleged bid-rigging.

It said at the time it was investigating 65 cases involving 70 projects worth about R29 billion after “uncovering widespread anti-competitive conduct through various arrangements” in the industry.

The stadium's initial price was R2.9 billion, but ultimately cost more than R4.3 billion.

Cape Town city spokeswoman Kylie Hatton told the newspaper if the allegations were proved true, the city could take a number of steps, including legal action, to recover costs, a formal civil claim, and/or officially blacklisting any party found guilty. - Sapa

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