Esorfranki companies ordered to pay R15.7m for colluding to fix prices

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The Competition Tribunal has ordered three Esorfranki companies to pay an administrative penalty of R15.7m after finding they colluded with competitors in construction projects to fix prices and allocate customers and that they engaged in bid rigging.

The tribunal made this decision in the long-running case involving construction and engineering companies Esor Ltd, Esor Africa Ltd and Esor Construction.The matter relates to construction projects in the markets for geotechnical services including piling, lateral support, grouting and geotechnical drilling investigation services.

It said the companies colluded through “formal arrangements” until 2005 after which they engaged in “ad hoc arrangements”. It argued that the commission, therefore, could not bring the case against it in terms of the Competition Act, which — before the 2018 amendments — provided that a complaint in respect of a prohibited practice may not be initiated more than three years after the practice has ceased.

On that basis alone, the claim by Esorfranki that the commission's 2009 initiation was not valid “fell to be dismissed”.

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There we go with the collusive oligopolies in SA that are undermining the country’s opportunity to rise to its potential

CoruscaKhaya Isn’t this corruption perpetuated by individuals within the “companies”? Are we going to see the pictures and details of executives involved? Or are they too white to be paraded by the media? Besides shouldn’t National Treasury be blacklisting all of them for SCM Abuse?

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