Competition Commission v Norvo Construction (Pty) Ltd (017004) [2013] ZACT 64 (22 July 2013)

Competition Commission v Norvo Construction (Pty) Ltd (017004) [2013] ZACT 64 (22 July 2013)

The Tribunal found that Norvo Construction (Pty) Ltd admitted to engaging in collusive tendering in contravention of section 4(1)(b)(iii) of the Competition Act, specifically by agreeing with G Liviero & Son Building (Pty) Ltd to add a loser's fee to the Tamboti at Simbithi Estates tender. Norvo provided full cooperation, ceased prohibited practices, and undertook to implement a compliance programme. The administrative penalty of R714,897 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 Norvo in respect of the disclosed conduct.

Citation
[2013] ZACT 64
Parties
Applicant: Competition Commission; Respondent: Norvo Construction (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
22 July 2013
Case Number
017004
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, Construction Industry Cartel
Competition Law Commercial and Corporate Collusive Tendering Bid Rigging Administrative Penalty Consent Agreement Construction Industry Cartel

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Parties

Competition Commission

Applicant

Norvo Construction (Pty) Ltd

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether Norvo 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 Norvo 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 Norvo Construction (Pty) Ltd admitted to engaging in collusive tendering in contravention of section 4(1)(b)(iii) of the Competition Act, specifically by agreeing with G Liviero & Son Building (Pty) Ltd to add a loser's fee to the Tamboti at Simbithi Estates tender. Norvo provided full cooperation, ceased prohibited practices, and undertook to implement a compliance programme. The administrative penalty of R714,897 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 Norvo in respect of the disclosed conduct.

Court Disposition

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

Orders

  • The consent agreement between the Competition Commission and Norvo Construction (Pty) Ltd is confirmed as an order of the Tribunal.
  • Norvo Construction (Pty) Ltd shall pay an administrative penalty of R714,897 to the Competition Commission within 30 days of confirmation of the consent agreement.