Sanral’s legal action against the seven construction companies guilty of collusive tendering is long overdue

11 May 2016

The Congress of South African Trade Unions welcomes and supports the decision by Sanral to lodge claims against the seven construction firms that were found guilty of collusive tendering by the Competition Commission. We feel that this action is long overdue and these companies have to be held responsible and accountable for conning Sanral out of an estimated R760 million.

COSATU strongly believes that the cartels and monopolies that dominate our economy have to be dismantled and also their managers to be dealt with , when they collude against consumers and taxpayers. We support government’s efforts to make sure that directors and managers of companies who engage in collusive actions are arrested.

We are fully behind Minister Ebrahim Patel’s efforts to strengthen the Competition Amendment Act and make it a criminal offence for directors or managers of firms to collude with their competitors to fix prices, divide markets among themselves or collude in tenders.

The cartels have abused their  market dominance and their alliance capitalism has not only crippled our economy but has perpetuated poverty by ensuring that ordinary consumers pay ridiculously high prices.

It is refreshing to see Sanral spending its energy and resources doing what is necessary, instead of wasting money sending Gauteng motorists’ legal summons demanding that they pay for e-tolls. If they had done this in 2013, they will have had the resources to invest in the roads infrastructure and help boost the economy by now. We hope Sanral can continue to focus on what is necessary and abandon the futile exercise of pursuing e-toll payments using scarce resources.

Issued by Sizwe Pamla, National Spokesperson, COSATU, 11 May 2016