Construction industry is building inclusivity — at last
Seven groups are set to drive transformation by each paying millions to promote black ownership
To say the past five months have been a chaotic time for the SA construction industry would be an understatement. Seven listed construction and engineering groups that were found to have colluded around the 2010 Fifa World Cup Stadium projects have been made to contribute R1.5bn over 12 years to promote black ownership in the sector as part of a settlement with government. Parties to the (voluntary) settlement are Murray & Roberts, Aveng, WBHO, Stefanutti Stocks, Raubex, Basil Read and Group Five. For this to happen they had to cough up about R170m each in upfront payments, according to financial accounting regulations. This is over and above the R1.46bn competition commission fine imposed earlier on 15 construction companies for alleged collusive practices. Obviously, this has negatively affected profits — and at the worst possible time. Many of the companies are struggling in dismal construction and engineering markets. Judging by the faces of ministers and industry executives at ...
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