Construction cartel barons still in the saddle
Two executives linked to the construction price-fixing scandal remain at their posts. Mike Wylie has been chairperson of WBHO since 2002. Construction industry leaders allegedly fixed state and other contracts –including five World Cup stadium deals – worth billions of rand, yet at least two executives remain in their positions at their companies.
They were later attended by Willie Meyburgh, chief executive of Stefanutti Stocks. This directly contradicts statements made to Competition Commission head Shan Ramburuth.
During an announcement that fines of R1.46-billion would be imposed on 15 construction companies, Ramburuth told the media on June24 that chief executives and senior executives had denied awareness of any anticompetitive behaviour. This behaviour included agreements among construction companies to divide the allocation of projects relating to the stadiums or discussions around a general inflation of pricing at 17.5%.
The affidavits in the Mail & Guardian's possession indicate that the practice was widespread and widely known about – and continued around large projects for some years after 2000 on an informal basis, making it hard to believe that executives and senior staff members did not know. One affidavit said a senior executive – not Meyburgh – had told him that their company had been asked to join an "elite club" in the early 1990s.
Up to that point the construction company in question, Stefanutti, had been too small to be considered to join the group, but had apparently landed some important contracts.... Read the full, comprehensive news article and discuss at Mail & Guardian