The South African National Roads Agency (Sanral) is quantifying damages it may have suffered through collusion by construction firms to determine whether a civil case could be made to recover any loss or damages.
Sanral has also laid criminal charges with the Hawks because of the collusion.
This follows the Competition Tribunal last year confirming settlement agreements reached between the Competition Commission and 15 construction companies, which were collectively fined R1.46 billion.
Twenty-nine Sanral projects, including the Gauteng Freeway Improvement Project (GFIP), were included in these settlement agreements.
Vusi Mona, a spokesman for Sanral, said it remained outraged by the collusive behaviour of firms and did not tolerate any form of corruption or collusion in the implementation of its tenders and programmes. Mona said Sanral believed it was the only government agency that had declared its intention to recover money from private sector companies involved in the collusion.
He added that the civil damages process was “neither an easy one nor a short one as it is not only GFIP projects that were impacted”.
Criminal charges
In regard to the criminal charges, Mona said that Sanral recognised that only individuals could be criminally prosecuted and it would be up to the National Prosecuting Authority (NPA) to decide who to prosecute once the Hawks’ investigation had been finalised.
He stressed that the criminal charges were not limited to those companies which had reached settlements with the Competition Commission.
Sanral was responding to questions by Business Report following the release of the Gauteng provincial government e-toll advisory panel report.
One of the recommendations of the panel was that Sanral, the National Department of Transport and Gauteng provincial government should lobby the National Treasury for the pro rata portion of the administrative fine linked to the GFIP to mitigate and reduce costs for e-tolls by servicing the debt or settlement of the penalty fee for early termination of the ETC contract.
Mona confirmed that Sanral was working with the Treasury, the National Department of Transport and the Gauteng provincial government to devise a solution and awaited the outcome of the process led by Deputy President Cyril Ramaphosa to provide policy clarity as well as the funding model for the GFIP.
The commission and the Treasury failed to respond to a request for comment yesterday.
Firms’ response
Ed Jardim, a Murray & Roberts (M&R) spokesman, said that the group was aware of the steps Sanral was taking because it had on a few separate occasions last year been in contact with Sanral regarding competition matters.
But Jardim said it had not to date had any engagement with Sanral on any civil damages claims against M&R.
He said M&R had also been co-operating with the police.
M&R confirmed last year that it had reached a financial settlement with a former executive who was involved in anti-competitive behaviour, another was disputing his involvement, and it was still engaging with the remaining four executives who had been implicated.
Raubex said it had been and would continue to co-operate with Sanral, and all other relevant authorities, on this matter but to date had not been notified of any civil claims.
Amanda Wightman, Basil Read’s chief financial officer, said the group had not had any engagements with Sanral about any civil damages claim that might be lodged against it.
Wightman added that it would continue to co-operate with Sanral regarding any investigation relating to collusive activity and if approached by the Hawks “would provide the appropriate co-operation”.
Eric Vemer, the chief executive at Group Five, said the group noted confirmation that Sanral was in the process of quantifying the civil damages it alleged had suffered as a consequence of projects that were the subject of settlement with the competition authorities.
He said it also noted Sanral’s confirmation it had laid criminal charges with the Hawks.
He said Group Five did not have any information other than that already expressed in announcements by the group, which set out its position about Competition Commission matters, and could not comment on the legal avenues currently being explored by Sanral.
Dawn Spencer, an Aveng spokesperson, said it would co-operate with all relevant authorities, adding that Sanral was an important client and that the group had and would continue to engage on all relevant matters.
“Aveng will consider and deal with each potential claim appropriately at the relevant time,” she said.
Wilson Bayly Holmes Ovcon, and Stefanutti Stocks failed to respond to a request for comment.
Fast Facts
Sanral projects where construction firms have reached settlement agreements with the Competition Commission and admitted collusion.
Aveng:
Settled 17 cases, fined R305.57 million. Of these projects, two affected Sanral projects.
- Sanral tender for rehabilitation of the gravel road N2 to the R56 T-junction in Mount Frere.
- Road contractors meetings at which various construction companies agreed to allocate tenders and submit cover bids.
Basil Read:
Settled seven prohibited practices, fined R94.9m. Of these cases, four affected Sanral.
- N1 Section 16 Glen Lyon/Zandkraal.
- N1 Section 15 and 16 Glen Lyon/Zandkraal.
- R40 Barberton Reconstruction Project.
- 2006 road contractors meetings at which various construction companies agreed to allocate tenders and submit cover bids.
Haw & Inglis Civil Engineering:
Settled six cases, fined R45.3m. Of these, four affected Sanral.
- N11 Amersfoort to Ermelo.
- N2 Section 10, Gamtoos to Van Stadens River.
- Upgrading of Trunk Road 57/3 from Alice to Middledrift.
- 2006 road contractors meetings at which various construction companies agreed to allocate tenders and submit cover bids.
Murray & Roberts:
Settled 17 prohibited practices, fined R309.4m. Of these cases, four involved Sanral.
- 2006 road contractors meetings at which various construction companies agreed to allocate tenders and submit cover bids.
- Gauteng Freeway Improvement Project.
- National Route 5, Section 4 between Senekal and Vaalpenspruit.
- N1 North, N1 South and N17 maintenance contract.
Raubex:
Settled nine cases, all of which affected Sanral, fined R58.8m.
- 2006 road contractors meetings at which various construction companies agreed to allocate tenders and submit cover bids.
- Upgrading road Gamtoos to Van Staden River.
- Upgrading road 57/3 from Alice to Middledrift.
- Upgrading of National Route 2, Section 8, Tsitsikama to Witelsbos.
- Upgrading of National Route 12, Section 12, Beefmaster Intersection to Bloemhof.
- Rehabilitation of National Route 11 Section 6 & 7, from Amersfoort to Ermelo.
- Upgrading of National Route, Hilltop – Barberton.
- Upgrading of N1 from Zandraal to Verkeerdvlei.
- Upgrading of National Route 1 Section 15, Glen Lyon to Zandraal.
Rumdel Construction:
Settled three cases for which it was fined R17.1m. Sanral was the client in two of these cases.
- Upgrading of Trunk Road 57/3 from Alice to Middledrift.
- Upgrading of T15 Mount Frere.
Stefanutti Stocks:
Settled 21 prohibited practices, fined R306.89m. Of these projects one involved Sanral.
- Gauteng Freeway Improvement Project.
WBHO:
Settled 11 cases, fined R311.28m. Sanral was the client in three of these cases.
- Gauteng Freeway Improvement Project.
- Upgrading of 14km of the N2 between Tsitsikama and Witelsbos.
- Rehabilitation of N12 between Beefmaster and Bloemhof.
Note: Group Five did not reach a settlement with the Competition Commission during the fast-track settlement process. The group was granted conditional corporate leniency on the 25 projects it disclosed but was implicated in four projects it did not disclose.
It is not known how many of these projects were Sanral tenders.