Enterprise development programmes targeting black contractors were allocated less than a quarter of the funds committed to a trust established by government and seven listed construction companies between August 2017 and March 2021. At just 23.8%, this allocation by the Tirisano Construction Fund stands in stark contrast to the 51.36% – or just over R148 million of the total of R288.25 million – the fund allocated to social infrastructure programmes.
– from government and state-owned entities arising from admissions of collusion and bid-rigging in their settlement agreements with the Competition Commission. Read: Cost of 2010 World Cup stadiums hit by weak rand New twist in R429m civil damages claim against construction companies Each of the seven companies agreed to contribute R1.25 billion over 12 years to the fund and to undertake further transformation initiatives, including mentoring up to three emerging black-owned contractors.
Group CEO Wolfgang Neff said last week during a presentation on the company’s latest results that the group is doing well with regard to what it has to deliver in terms of the VRP and is “definitely on track”. Raubex states in its 2022 annual report that as part of the VRP agreement, it has undertaken to develop and mentor two emerging contractors – Enza Construction and Umso Construction.