Cape Town sets lawyers on stadium bid-riggers

The City of Cape Town is taking legal action to recover R400-million from the companies linked to collusion and bid-rigging before the construction of the city's World Cup stadium, mayor Patricia de Lille announced yesterday.

The stadium, which cost R4.5-billion, was built by a Murray & Roberts and Wilson Bayly Holmes-Ovcon (WBHO) joint venture.

Speaking during a council meeting, De Lille said Cape Town would be the first municipality to take action.

"I have instructed the city's attorneys to issue summons for the recovery of the damages suffered.

"Bid-rigging is the most serious contravention of the Competition Act and is designed to subvert competitive tender processes, leading to increased costs," De Lille said.

The Competition Commission fined companies involved in the construction of Cape Town Stadium and several others a combined R1.46-billion after they were found to have rigged bids for numerous state projects.

Other stadiums affected by the bid-rigging were the Mbombela in Nelspruit, Peter Mokaba in Polokwane, Moses Mabhida in Durban, Soccer City in Johannesburg and Nelson Mandela Bay in Port Elizabeth.

The SA Local Government Association announced last year that it would pursue the companies after they were fined by the Competition Commission.