Six of SA’s largest construction and engineering groups confirmed on Tuesday that they would collectively pay R1.25bn to accelerate transformation in the country’s construction sector, in settlement of collusion claims in the industry. Contributions to be paid over the next 12 years will be used for socioeconomic development, and will also address the companies’ exposure to potential claims for damages from projects arising from the fast-track settlement process launched by SA’s competition authorities in early 2011. This includes cases related to infrastructure built for the 2010 Fifa World Cup. "Following an extensive period of negotiation, the government and the construction companies have concluded the settlement agreement, which comprises a financial contribution by the … companies into a jointly administered trust fund, as well as certain transformation commitments over and above the current broad-based black economic empowerment sector requirements," JSE-listed Group Five sai...
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