News
Murray & Roberts agrees settlement with Competition Commission and closes the chapter on anti-competitive practices
24 June 2013
Murray & Roberts has settled with the Competition Commission and thereby concluded the investigation into historical anti-competitive behaviour. Murray & Roberts has agreed to pay a penalty of R309 million in full and final settlement of all matters being investigated as part of the Commission's fast-track settlement process. The Commission will refer this settlement to the Competition Tribunal for final approval.
Henry Laas, Group Chief Executive, Murray & Roberts comments "After an exhaustive process, we have finally reached settlement with the Commission. The investigation and its subsequent burden on our reputation have weighed heavily on our employees and stakeholders. To the best of our knowledge, there is no anti-competitive conduct present within the Group and the Board and management continue to set the vision for and commitment to a morally and ethically sound culture within Murray & Roberts. We support a fully competitive culture in the industry."
The settlement amount is not materially higher from what was provided for by the Group and is payable in three payments - one third one month after the Tribunal confirms the settlement, one third after twelve months and one third after 24 months.
Uncovering historical collusive conduct within the Murray & Roberts group was one of the first steps taken towards rooting out any collusive practices in the South African operations. Most of the conduct identified during the fast-track settlement process related to persons who are no longer employed within the Group and largely to companies acquired by Murray & Roberts in 2006/7.
Today, employees continue to undergo comprehensive training and understand that there are severe consequences to contravening the Competition Act. Additional processes have also been implemented to prevent any anti-competitive behaviour namely; annual compliance declarations by all executives, as well as compliance declarations with each tender submitted.
"South Africa, led by Government, has defined a major infrastructure development programme, which sits at the heart of the plans for job creation and economic growth. Murray & Roberts, as well as other construction companies, have a substantial role to play in developing this new major infrastructure mandate and creating employment. We trust that the conclusion of the fast-track settlement process will restore Government's trust in the industry and serve as a catalyst for Government to accelerate the implementation of its infrastructure programme," concludes Laas.
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