Construction Companies Involved in Collusive Tendering
Must Be Blacklisted

26 June 2013    



The IFP calls for the construction companies involved in collusive tendering to be blacklisted and prevented from receiving any further government tender awards.


IFP Spokesperson on Finance, Mr Narend Singh, MP said, “Besides being concerned about the meagre penalties imposed by the Competition Commission against these companies, we are more concerned about alleged kickbacks to certain political parties post-tender-award by some companies, which must be closely scrutinized.


We therefore call on the Public Protector to fully investigate whether or not there were kickbacks paid to political parties or individual politicians during this process.”


The Construction Industry Development Board must appoint an investigating officer to investigate this matter and severe disciplinary action must be taken against the offending companies.


Singh further stated that, “The collusion and the price-fixing affected both public and private sector projects. The state is entitled to take steps if it feels it has suffered losses due to the anti-competitive behaviour and if any other laws have been breached the relevant law enforcement agencies will look into that,” concluded Singh.


The IFP calls on government to speed up the process of re-evaluating its tender processes, so that the competitive behaviour in the construction industry can help to lower the cost of the public sector infrastructure build aimed at boosting economic growth in the country.



Issued by: IFP Spokesperson on Finance, Mr Narend Singh MP, 083788 5954 

Or contact 

IFP Parliamentary Media Liaison Officer, Mr Phendulani Biyase, 073 24 5675