Roy Cokayne
TWO separate collusive tendering cases involving construction firms Afristruct Projects and Giuricich Coastal Projects have been referred by the Competition Commission to the Competition Tribunal for prosecution.
The Afristruct referral relates to collusive tendering with listed Stefanutti Stocks for the tender of the construction of the New Tapping Fume Extraction System Assmang Manganese project, while the Giuricich referral relates to collusive tendering with listed Aveng subsidiary Grinaker-LTA on the Mondi Reel project at the Mondi Merebank mill in KwaZulu-Natal.
The commission is not seeking any relief or penalty against either Stefanutti Stocks or Grinaker-LTA.
Fhatuwani Mudimeli, an inspector in the cartels division at the Competition Commission, said in two separate affidavits Stefanutti and Grinaker-LTA had both applied for and were granted conditional immunity in March for their respective cases. He said Afristruct and Giuricich did not participate in the fast-track settlement process.
Investigation
Mudimeli said an investigation by the commission found that MikroPul South Africa in November 2008 invited bids for the construction of the project and received bids from Fountain Civils, Afristruct and Stefanutti.
He said Stefanutti’s managing director at the time John Jackson allegedly had a telephone conversation with Afristruct director Jerome Keiser a few days before the December 5, 2008, closing date for the submission of tenders for the project and an arrangement was allegedly reached on a cover price and a loser’s fee.
In terms of this agreement, Afristruct allegedly agreed to put in a bid price that was higher than the bid price of Stefanutti’s to ensure that Stefanutti won the tender.
Stefanutti further allegedly agreed that a loser’s fee of R200 000 would be paid to Afristruct. The tender was awarded to Stefanutti.
Mudimeli added that an investigation by the commission into the Mondi Reel project found that Mondi in February 2008 invited Giuricich, Grinaker-LTA and Stefanutti & Bressan, now Stefanutti Stocks, to submit a design and construct proposal for the construction of the project.
Grinaker-LTA and Giuricich submitted tenders for the project. But Mudimeli said a few days after Grinaker-LTA and Giuricich met Mondi, Grinaker-LTA business development director at that time Alistair McNair allegedly had telephone conversations with Giuricich managing director Rodney van der Walt and a cover price agreement was reached.
In terms of this agreement, Grinaker-LTA allegedly agreed to provide Giuricich with a higher tender price than the price Grinaker-LTA would submit to Mondi to ensure Giuricich did not win this tender.
Giuricich allegedly submitted a higher tender price and the project was awarded to Grinaker-LTA.
The commission is seeking orders from the tribunal declaring Afristruct and Giuricich liable for the payment of a fine equal to 10 percent of its annual turnover for these two cases.