Government has reached agreement with seven listed construction companies found to have participated in collusion that they will sell at least 40% of their shares to blacks or alternatively to help up to three black-owned construction companies to build their turnover.
These commitments were part of an overall agreement which includes a R1.4-billion fine imposed by the Competition Tribunal‚ and the payment of a further R1.5bn to a fund to support social investment initiatives.
Minister in the Presidency Jeff Radebe announced at a post-cabinet media briefing on Thursday that the CEO of these companies would also sign an “integrity commitment” committing themselves to wide-ranging steps to ensure no collusive or corrupt practices took place in their companies in their dealings with competitors‚ government and other private sector clients
“The settlement agreement provides for certain formal processes to be finalised within the next few weeks and these are being processes and attended to and an announcement will be made on conclusion of these processes‚” Radebe said.
He noted that the “partner model” - the alternative to the “equity model” to sell shares to blacks - would involve construction companies working with up to three black-owned construction partner companies to help them generate turnover equal to 25% of their own turnover.
“This commitment has been valued in excess of R9bn annual turnover by the end of the agreement period‚" Radebe said.
The agreement he noted would accelerate transformation of the construction industry.
– TMG Digital/BusinessLIVE
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