Construction company agrees to pay fine, but denies it contravened Competition Act

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BY: MARLENY ARNOLDI
CREAMER MEDIA ONLINE WRITER

A Gauteng-based construction and electrical civils company called Maziya General Services has agreed to pay a R300 000 penalty for allegedly colluding on a City Power tender in June 2018.

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The tender related to the appointment of labour contractors for the installation and maintenance of medium- and low-voltage infrastructure including public lighting and major capital expenditure projects.

In terms of a settlement agreement, concluded between the company and the Competition Commission, Maziya also agreed to implement a competition law compliance programme and committed to refrain from engaging in any anti-competitive conduct, in contravention of the Competition Act.

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Although Maziya agrees to the terms of the settlement agreement, it does not admit that it contravened the Act, as alleged by the commission.

In December 2019, the commission received a complaint from City Power. It alleged that Maziya and another company had entered into an agreement to fix prices and tender collusively when responding to the City Power tender.

The commission’s investigation found that, around June 2018, Maziya and the other firm had agreed on prices for line items to the tender, related to the supply of ready mix concrete, laying of cable and replacement of jumpers. 

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