NUMSA calls for dismissal and prosecution of directors and CEOs of construction firms found guilty of bid rigging and collusive tendering
June 25, 2013
The National Union of Metalworkers of South Africa (Numsa) notes the Competitions Commission reached an agreement with fifteen (15) construction companies, and agreed to penalties collectively totaling R1.4 billion for bid-rigging and collusive tendering.
We are concerned that the Competition Commission's agreement reached with these construction companies of a fine makes the fight against corruption and collusive tendering ridiculous. The collective fine to be paid by these fifteen companies, no matter how huge the quantum, it let off-the-hook those directly responsible for bid-rigging and collusive tendering. Clearly the fine will come from the coffers of these companies and it can be recouped anytime through dodgy means, thus make this whole exercise a mockery.
We demand that individual company Directors and their CEOs be dismissed and face prosecution for bid-rigging and collusive tendering. We call on President Jacob Zuma to promulgate the Amended Competition Act which will place criminal liability on Directors and CEOs'. Furthermore, all the fifteen companies should be banned and black-listed from doing work with government. This demand will send a strong message that our people's government is serious about dealing with corruption. Our demand is consistent with electoral mandate of President Jacob Zuma's led administration of dealing decisively with the rampant scourge of corruption wherever its manifests itself.
This scandalous bid-rigging and collusive tendering by these big constructions companies should also make government to rethink and consider establishing a state-owned building company to meet our massive infrastructure developmental needs, within the context of resolving the triple crisis of poverty, unemployment and inequality.
Statement issued by Castro Ngobese, NUMSA National Spokesperson, June 25 2013
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