The Competition Commission of South Africa has referred to the Competition Tribunal for confirmation as an order a consent settlement agreement it reached with a construction company, GVK-Siya Zama.
In terms of the agreement, GVK has undertaken an administrative penalty of R6 038 852.00 (US$410,375.46). The company was charged with price fixing, market division, and collusive conduct in the construction industry in contravention of the Competition Act.
In February 2008, GVK entered into an agreement with Group Five to collude in the tender issued by the Mediclinic Group. Group Five provided a cover price, higher than theirs, to GVK to tender for the construction of the Cape-Gate Mediclinic Hospital in Brackenfell, Cape Town.
GVK also entered into a collusive agreement with Neil Muller Construction in July 2010, and tendered for the Tygervalley Shopping Mall. NMC provided a cover price, higher than theirs, to GVK to tender for minor alterations and extensions towards the Tygervalley shopping mall.