Giuricich Coastal Projects fined R900‚000 for cover pricing

22 May 2017 - 19:55 By TMG Digital
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The Competition Tribunal has imposed an administrative penalty of R900‚000 on Giuricich Coastal Projects for cover pricing in 2008 while tendering for the Mondi Reel Handling Project.

The other party Grinaker‚ a wholly owned subsidiary of Aveng (Africa) Limited‚ was awarded conditional immunity for the contravention.

The Commission Commission which referred to the case to the Tribunal‚ said in its complaint said that Mondi had invited three firms – Giuricich‚ Grinaker and Stefanutti Stocks - to submit a design and construct proposal for the construction of the Mondi Reel Handling Project in Mondi Merebank mill in KwaZulu-Natal.

Stefanutti did not tender for the project.

According to the complaint brought by the Commission the two executives of the rival building companies discussed a proposed contract for a customer in which Giuricich agreed to submit a tender higher than that of Grinaker‚ ensuring that Grinaker would be awarded the contract. The project was awarded to Grinaker.

In a statement on Monday‚ the Tribunal said: “The Tribunal was faced with the challenge of deciding which argument was the most plausible – that of the Commission or that of Giuricich‚ as the content of a phone conversation between the rival building companies‚ of which there are no other witnesses‚ was the subject of dispute.

“On one version‚ that of the Commission‚ the conversation formed an integral part of the conspiracy to rig a tender. Giuricich’s version of the contents of the telephone conversation favoured them.”

The Tribunal said it would explain in detail its decision for finding that Giuricich had contravened the Competition Act when it releases its reasons next week.

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