Competition Commission v Aveng (Africa) Ltd (016931) [2013] ZACT 76 (23 July 2013)

Competition Commission v Aveng (Africa) Ltd (016931) [2013] ZACT 76 (23 July 2013)

The Tribunal found that Aveng (Africa) Ltd, through its operating unit Grinaker-LTA, admitted to engaging in collusive tendering and bid-rigging in contravention of section 4(1)(b)(iii) of the Competition Act. The consent agreement detailed specific projects and meetings where Aveng participated in cover pricing, market allocation, and agreements to distort tender outcomes. Aveng cooperated fully with the Commission, provided truthful disclosure, and undertook to implement a compliance programme. The Tribunal accepted the administrative penalty of R306,576,143, calculated in accordance with the Commission's Invitation, and confirmed the consent agreement as an order. The order concludes...

Citation
[2013] ZACT 76
Parties
Applicant: Competition Commission; Respondent: Aveng (Africa) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
23 July 2013
Case Number
016931
Procedural Posture
Consent Order Application / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed.
Judges
N Manoim, Y Carrim, T Madima
Legal Topics
Collusive Tendering, Bid Rigging, Administrative Penalty, Consent Agreement, Section 4 1 B Iii, Corporate Leniency Policy
Competition Law Commercial and Corporate Collusive Tendering Bid Rigging Administrative Penalty Consent Agreement Section 4 1 B Iii Corporate Leniency Policy

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Parties

Competition Commission

Applicant

Aveng (Africa) Ltd

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether Aveng (Africa) Ltd contravened section 4(1)(b)(iii) of the Competition Act by engaging in collusive tendering and bid-rigging.
  2. 2 Whether the consent agreement between the Competition Commission and Aveng (Africa) Ltd should be confirmed as an order of the Tribunal.
  3. 3 What administrative penalty is appropriate for the admitted contraventions.

Ratio Decidendi

The Tribunal found that Aveng (Africa) Ltd, through its operating unit Grinaker-LTA, admitted to engaging in collusive tendering and bid-rigging in contravention of section 4(1)(b)(iii) of the Competition Act. The consent agreement detailed specific projects and meetings where Aveng participated in cover pricing, market allocation, and agreements to distort tender outcomes. Aveng cooperated fully with the Commission, provided truthful disclosure, and undertook to implement a compliance programme. The Tribunal accepted the administrative penalty of R306,576,143, calculated in accordance with the Commission's Invitation, and confirmed the consent agreement as an order. The order concludes...

Court Disposition

Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed.

Orders

  • The consent agreement between the Competition Commission and Aveng (Africa) Ltd is confirmed as an order of the Tribunal.
  • Aveng (Africa) Ltd shall pay an administrative penalty of R306,576,143 in three equal instalments as specified in the agreement.