Aveng’s deal with tribunal confirmed

THE COMPETITION Tribunal has confirmed a consent agreement between Aveng and the Competition Commission that granted the listed construction and engineering group conditional immunity from an administrative penalty for collusive tendering on several projects.

Layne Quilliam, counsel for the commission, said at a tribunal hearing yesterday that the purpose of the consent agreement and application was to confirm the collusive conduct of Aveng as a contravention of the Competition Act to allow third parties to seek civil damages.

Quilliam said the commission was not seeking a penalty in this application because Aveng had been granted conditional immunity in terms of the commission’s corporate leniency policy. Collusion He said the collusive conduct that formed the subject of this consent agreement related to 10 construction matters that Aveng informed the commission of in terms of the fasttrack settlement process.

Quilliam said Aveng was also the leniency applicant for the 2011 complaint related to the Transnet Railway Maintenance tenders.

He said the consent agreement was based on two complaints, the first involving the September 2009 complaint initiated by the commissioner against pervasive collusive conduct in the construction industry.

Aveng was cited in this complaint and it included collusive tendering through the exchange of prices, he said.

Quilliam said this complaint was the impetus for the commission to invite construc- tion firms in 2011 to come forward and admit their conduct and settle their allegations in a fast-track process.

He said Aveng responded to this process and provided information to the commission on 10 of the projects that formed the subject of this application.

These projects were the tenders for the development of land for the Goedgevonden crushing project; BKM Processing Plant Project; BKM Export Rail Line Project; Tambothi Project; Pansy Cove block of flats in Mossel Bay; Komati Chimney Project for Eskom; rehabilitation of N2 Gamtoos to Van Staden Bridge for the SA National Roads Agency (Sanral); rehabilitation of national road Colesberg to Springfontein for Sanral; a project at South Deep Mine; and Hartebeesfontein Water Works Project for the East Rand Water Care Company. The collusive conduct that formed the subject of this consent agreement related to 10 matters.

Quilliam said the Transnet Rail Maintenance tenders had been referred to the tribunal for adjudication on the other parties but Aveng had been cited in the referral despite having been granted conditional immunity.

He said the reason this tender was included in this consent agreement was to confirm Aveng’s status as the leniency applicant and confirm its obligations to assist the commission in the prosecution of its referral.

Aveng shares fell 2.64 percent on the JSE yesterday to close at R7.