Company to pay R300k penalty over City Power deal
A Gauteng-based construction company has agreed to pay a R300,000 penalty after being investigated by the Competition Commission for allegedly colluding on a City Power tender.
The June 2018 tender related to the appointment of labour contractors for the installation and maintenance of medium- and low-voltage infrastructure, including public lighting and major capex projects.
Though Maziya General Services agreed to the terms of the settlement, it did not admit it contravened the Competition Act, as alleged by the commission.
The commission said it has agreed to enter into the settlement agreement without an admission of liability, based on the fact Maziya has not previously been found guilty of contravening the act. The commission does not wish to use its limited litigation resources to pursue a small firm like Maziya, and the tender was cancelled before coming to an end.
The complaint came to the commission in December 2019 from City Power. The Johannesburg entity had alleged that competitors, Maziya and Cromico Trading, entered into an agreement to fix prices and tender collusively when responding to the City Power tender.
Maziya agreed to implement a competition law compliance programme and undertook to refrain from engaging in any anticompetitive conduct in contravention of the act. The settlement agreement has been confirmed as an order by the Tribunal.