NEWS ANALYSIS: Opacity over construction pact is risky
SA’s listed construction firms have been struck down by the paralysis that is neutralising relationships between many stakeholders in SA Inc
There has been no full public disclosure by the Department of Economic Development and seven JSE-listed construction and engineering groups over their signing of a voluntary transformation agreement. The department and executives of some of the companies have cited continuing confidentiality of the terms and conditions of the "Voluntary Rebuilding Programme" at a time that the economy is looking to be in an increasingly perilous state. The opacity surrounding what is also known as the "settlement agreement" can only be construed as risky and inappropriate behaviour on the part of these parties against the interests of shareholders. Many of SA’s major infrastructure groups have failed to deliver over the seven years since the 2010 soccer World Cup despite billions of rand having been poured into public development projects. Granted, all but one of these groups were collectively fined R1.46bn by SA’s competition authorities for engaging in collusion in the sector — taking some lustre ...
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