Construction firms just don't get it
Construction giant WBHO warned shareholders that it was likely to report headline earnings per share up to 42.5% weaker than the previous year's
So WBHO is reporting weaker numbers because of its socioeconomic contributions? Nothing could be further from the truth. In October last year, the government signed a "voluntary" settlement agreement with seven JSE-listed construction companies including WBHO. They were part of the original 15 found guilty of collusion in the building of the 2010 Fifa World Cup infrastructure, and collectively fined a measly R1.46-billion by the Competition Commission in a fast-track settlement agreement. Fast forward to February 2017, to a media briefing led by four ministers and seven construction company CEOs announcing they had signed an agreement to "promote transformation ... and settle outstanding and potential civil claims between the parties relating to a number of infrastructure projects". There are three main components to the deal: a financial contribution of R1.5-billion by the companies over seven years for developmental projects; commitments to promote transformation and black South A...
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