Local governments are seeking reimbursement of up to R3.9 billion from construction companies for overcharging on stadium and road contracts for the 2010 soccer World Cup.
“We plan to claim as much as we can,” SA Local Government Association (Salga) chief of operations Lance Joel said yesterday.
“It is fair.”
Salga plans to hold meetings with the companies starting this week to reach an out-of-court agreement.
The Competition Commission has already recommended that 15 construction firms be fined a combined R1.46bn for collusion over prices for projects including those commissioned for the World Cup.
The new claims relate to the R13bn worth of contracts awarded to build six stadiums, roads and related infrastructure for the soccer event.
The contracts were awarded from 2006 to the end of 2009.
“Overcharge on these contracts range from 10 percent to 30 percent,” Joel said, adding: “The association will not be adding penalty interest.”
Salga has filed with the Competition Tribunal to be listed as an “aggrieved party” when the court rules on the final fine set by the commission.
Salga will remain guided by the tribunal. – Bloomberg