Four firms referred to Competition Tribunal over alleged Eskom tender collusion

CAPE TOWN – The Competition Commission on Tuesday reported that it had referred four companies to the Competition Tribunal for prosecution over alleged price fixing and collusion involving an Eskom tender worth R4.5 billion.

The tender related to the supply, installation and dismantling of scaffolding and thermal insulation for all of the power utility’s 15 coal-fired power stations.

The commission is mandated to investigate alleged unfair business practices, while the tribunal rules on competition matters referred to it by the commission.

The investigation by the commission found evidence of price fixing  and collusion on the part of Waco Africa, acting through its division, Tedoc Industries, SGB Cape, Mtsweni Corrosion Control and Superfecta Trading 159 CC.

It also found evidence of collusion on the part of three joint ventures which SGB Cape formed with each of the companies.

SGB Cape had submitted bids on its behalf and on behalf of the three joint ventures and priced the bids in such a way that it manipulated prices quoted by itself and the joint ventures, the commission said.

The commission also described SGB Cape as a marine and event scaffolding suppliers that also performs maintenance services, which include thermal insulation, corrosion protection, asbestos removal and industrial plastic encapsulation.

It also stated that Mtsweni, Tedoc and Superfecta were all human resource companies that offer services including placement, recruitment, payroll and other HR related services.

Photo Credits – Voice of the Cape

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