AN ATTEMPT by the Competition Commission to take down three additional construction companies allegedly involved in colluding on projects related to the 2010 Soccer World Cup has been put on ice.
On Thursday, the Competition Tribunal said the commission had to provide additional evidence to motivate why the three companies should be joined to a six-year case against price fixing in the sector.
The tribunal said the commission had 30 days to submit this evidence in a supplementary affidavit that would have to outline when the parties colluded and whether this contravening behaviour was still ongoing or had ceased.
Failure to do so would allow the respondents to apply for the allegations against them to be dismissed.
On Wednesday, the commission appeared before the tribunal to argue that Esor, Franki and Geomech should be listed along with six other companies for their involvement in colluding on two projects — the Gautrain Rapid Rail Link Project and the Lesotho Highlands Water Project.
The six companies — Grinaker-LTA, Esorfranki (now Esor), Rodio Geotechnics, Dura Soletanche Bachy, Geomechanics, and Diabor — were caught for alleged price-fixing that took place between 2006 and 2007.
Esor and Franki are subsidiaries of JSE-listed Esor, while Geomech is owned by drilling and exploration company GeoGroup.
Opposing counsels of Esor, Franki and Geomech, however, argued that the commission had not initiated a complaint against them, a necessary precursor to an investigation, and that the time period for initiating such a complaint had lapsed.
In terms of section 67 of the Competition Act, a complaint in respect of prohibited practice cannot be initiated more than three years after the practice has ceased.
At 2.30pm Esor’s share price was down 4.35% to 22c, valuing the company at about R86.9m.
Cape Town Stadium during its construction prior to the 2010 Soccer World Cup. Picture: SUNDAY TIMES
AN ATTEMPT by the Competition Commission to take down three additional construction companies allegedly involved in colluding on projects related to the 2010 Soccer World Cup has been put on ice.
On Thursday, the Competition Tribunal said the commission had to provide additional evidence to motivate why the three companies should be joined to a six-year case against price fixing in the sector.
The tribunal said the commission had 30 days to submit this evidence in a supplementary affidavit that would have to outline when the parties colluded and whether this contravening behaviour was still ongoing or had ceased.
Failure to do so would allow the respondents to apply for the allegations against them to be dismissed.
On Wednesday, the commission appeared before the tribunal to argue that Esor, Franki and Geomech should be listed along with six other companies for their involvement in colluding on two projects — the Gautrain Rapid Rail Link Project and the Lesotho Highlands Water Project.
The six companies — Grinaker-LTA, Esorfranki (now Esor), Rodio Geotechnics, Dura Soletanche Bachy, Geomechanics, and Diabor — were caught for alleged price-fixing that took place between 2006 and 2007.
Esor and Franki are subsidiaries of JSE-listed Esor, while Geomech is owned by drilling and exploration company GeoGroup.
Opposing counsels of Esor, Franki and Geomech, however, argued that the commission had not initiated a complaint against them, a necessary precursor to an investigation, and that the time period for initiating such a complaint had lapsed.
In terms of section 67 of the Competition Act, a complaint in respect of prohibited practice cannot be initiated more than three years after the practice has ceased.
At 2.30pm Esor’s share price was down 4.35% to 22c, valuing the company at about R86.9m.
Change: -0.47%
Change: -0.57%
Change: -1.76%
Change: -0.34%
Change: 0.02%
Data supplied by Profile Data
Change: -1.49%
Change: 0.08%
Change: -0.47%
Change: 0.00%
Change: -0.04%
Data supplied by Profile Data
Change: -0.34%
Change: 0.03%
Change: -0.10%
Change: -0.22%
Change: -0.69%
Data supplied by Profile Data
Change: -0.28%
Change: -1.15%
Change: -0.07%
Change: -1.21%
Change: -0.22%
Data supplied by Profile Data