Mayor welcomes R135m settlement in construction collusion matter

18 May 2022

I welcome the dispute settlement of approximately R135 million between construction firms and the City of Cape Town, the only metro to succeed in bringing a claim to the point of settlement arising from the FIFA World Cup construction collusion.

Attorneys acting for the City advised acceptance of the latest settlement proposal by construction firms ahead of the arbitration hearings, and following earlier rounds of talks.

Throughout the process, the City has emphasised that any settlement be a matter of public record, and not subject to confidentiality.

The settlement will see R93 million in cash payments to the City over a stipulated timeframe, and a minimum R42,5 million social investment of solar energy systems, guaranteed to the City for sites of its choosing.

This settlement serves to dissuade collusion of this type in the future, and concludes what would otherwise have been a protracted arbitration.

The construction industry has felt the impact of the last decade of weak economic growth, and the recovery of this sector is crucial to growth and jobs.

Cape Town is committed to enabling meaningful economic growth, backed by a programme of raised infrastructure investment and faster land release for development, especially for more affordable housing.

We look forward to constructive partnerships with all stakeholders towards these goals, based on principles of fairness and public value.

Issued by Greg Wagner, Spokesperson to the Mayor, 18 May 2022