Competition Commission v Guiricich Bros Construction (Pty) Ltd (016972) [2013] ZACT 77 (23 July 2013)

Competition Commission v Guiricich Bros Construction (Pty) Ltd (016972) [2013] ZACT 77 (23 July 2013)

The Tribunal found that Giuricich Bros Construction (Pty) Ltd admitted to engaging in collusive tendering in contravention of section 4(1)(b)(iii) of the Competition Act, specifically in relation to the Millwood Village Residential Project. The respondent provided full and expeditious cooperation, disclosed all relevant information, and undertook to cease prohibited practices and implement a compliance programme. The administrative penalty was calculated in accordance with the Invitation and the Act. The Tribunal confirmed the consent agreement as an order, concluding all proceedings between the Commission and Giuricich Bros Construction (Pty) Ltd in respect of the disclosed conduct.

Citation
[2013] ZACT 77
Parties
Applicant: Competition Commission; Respondent: Guiricich Bros Construction (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
23 July 2013
Case Number
016972
Procedural Posture
Consent Order Application / Application for Confirmation of Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; proceedings between the Commission and Giuricich Bros Construction (Pty) Ltd in respect of the disclosed conduct concluded.
Judges
N Manoim, Y Carrim, T Madima
Legal Topics
Collusive Tendering, Administrative Penalty, Corporate Leniency Policy, Consent Agreement, Bid Rigging
Competition Law Collusive Tendering Administrative Penalty Corporate Leniency Policy Consent Agreement Bid Rigging

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Parties

Competition Commission

Applicant

Guiricich Bros Construction (Pty) Ltd

Respondent

Procedural Posture

Consent Order Application / Application for Confirmation of Consent Agreement

Legal Issues

  1. 1 Whether Guiricich Bros Construction (Pty) Ltd engaged in collusive tendering in contravention of section 4(1)(b)(iii) of the Competition Act, 1998.
  2. 2 Whether the consent agreement between the Competition Commission and Guiricich Bros Construction (Pty) Ltd should be confirmed as an order of the Tribunal.
  3. 3 Whether the administrative penalty imposed is appropriate and in accordance with the Invitation and the Act.

Ratio Decidendi

The Tribunal found that Giuricich Bros Construction (Pty) Ltd admitted to engaging in collusive tendering in contravention of section 4(1)(b)(iii) of the Competition Act, specifically in relation to the Millwood Village Residential Project. The respondent provided full and expeditious cooperation, disclosed all relevant information, and undertook to cease prohibited practices and implement a compliance programme. The administrative penalty was calculated in accordance with the Invitation and the Act. The Tribunal confirmed the consent agreement as an order, concluding all proceedings between the Commission and Giuricich Bros Construction (Pty) Ltd in respect of the disclosed conduct.

Court Disposition

Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; proceedings between the Commission and Giuricich Bros Construction (Pty) Ltd in respect of the disclosed conduct concluded.

Orders

  • The consent agreement between the Competition Commission and Giuricich Bros Construction (Pty) Ltd is confirmed as an order of the Tribunal.
  • Giuricich Bros Construction (Pty) Ltd shall pay an administrative penalty of R3,552,568 in two equal instalments: R1,776,284 on or before 31 July 2013, and R1,776,284 on or before 31 August 2014.