Competition Commission probes R4.5bn Eskom tender

Four companies have been referred for prosecution in the Competition Tribunal for alleged price fixing and tender collusion involving an Eskom tender worth R4.5-billion.

This follows a complaint lodged by Eskom and a subsequent Competition Commission investigation into collusive tendering for the supply‚ installation and dismantling of scaffolding and thermal insulation at Eskom’s 15 coal-fired power stations.

The commission said its investigation “found evidence of price fixing and collusive tendering” on the part of Waco Africa (Pty) Ltd‚ acting through its division‚ SGB Cape‚ Tedoc Industries (Pty) Ltd‚ Mtsweni Corrosion Control (Pty) Ltd and Superfecta Trading 159 CC and three joint ventures which SGB Cape formed with each of the aforementioned companies through bilateral agreements.

Sketching the background‚ the commission said the invitation for the Eskom tender was issued in March 2015. Thirtyone suppliers responded to the tender by deadline at the end April 2015. In March 2016‚ the commission received Eskom’s complaint in which it alleged that SGB Cape and three joint ventures may have colluded when bidding for the tender.

One company allegedly submitted multiple tenders with the same signature on four submissions. “Safety‚ financial‚ technical and quality documents were identical.”

Although Eskom withdrew its complaint in March last year‚ the commission decided to continue with the investigation.