The Competition Commission is taking Group Five to ConCourt

The Competition Competition alleges that Group Five was part of a construction cartel that rigged tenders for the Fifa 2010 World Cup stadia, and is taking the matter to the Constitutional Court.

Group Five has so far rejected the legal action against it, claiming that on November 2, 2009, the Competition Commission granted the business protection from prosecution.

The commission’s Cartels Divisional Manager Mokgale Mahlalala gave a brief overview of when this ‘cartel’ was first identified by the Competition Commission as well as where the process is with regards to the Constitutional Court.

“In as far as the World Cup stadia is concerned, after we have referred the matter the Group Five collusion to the tribunal for prosecution, Group Five took the matter the High Court challenging the commission’s decision to refer them.”

“At the High Court, we argued that this matter should be handled by the tribunal as opposed to the High Court, but High Court decided that they can handle the matter and we were not happy with that outcome”

“We then appealed it through the Supreme Court of Appeal and they agreed with the High Court, and we remain unhappy because the law is very clear that if you want to review the commission’s decision to refer you must approach the Competition Commission tribunal and not the High Court,” says Mahlalala.

Green Point Stadium in Cape Town was created by the construction firm, which is one of the country’s largest. It was one of seven major construction and engineering firms accused of colluding in 2006 to share World Cup stadium construction contracts.

The Constitutional Court is set to hear the matter on May 3rd.

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