Competition Commission v Rumdel Construction Cape (Pty) Ltd (017020) [2013] ZACT 71 (22 July 2013)

Competition Commission v Rumdel Construction Cape (Pty) Ltd (017020) [2013] ZACT 71 (22 July 2013)

The Tribunal found that Rumdel Construction Cape (Pty) Ltd admitted to engaging in collusive tendering in three civil engineering projects, in contravention of section 4(1)(b)(iii) of the Competition Act. Rumdel cooperated fully with the Commission, provided truthful disclosure, and undertook to implement compliance measures. 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 Rumdel in respect of the disclosed conduct.

Citation
[2013] ZACT 71
Parties
Applicant: Competition Commission; Respondent: Rumdel Construction Cape (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
22 July 2013
Case Number
017020
Procedural Posture
Consent Order Application / Application for Confirmation of 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

Rumdel Construction Cape (Pty) Ltd

Respondent

Procedural Posture

Consent Order Application / Application for Confirmation of Consent Agreement

Legal Issues

  1. 1 Whether Rumdel Construction Cape (Pty) Ltd contravened section 4(1)(b)(iii) of the Competition Act by engaging in collusive tendering (bid-rigging).
  2. 2 Whether the consent agreement between the Competition Commission and Rumdel Construction Cape (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 Rumdel Construction Cape (Pty) Ltd admitted to engaging in collusive tendering in three civil engineering projects, in contravention of section 4(1)(b)(iii) of the Competition Act. Rumdel cooperated fully with the Commission, provided truthful disclosure, and undertook to implement compliance measures. 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 Rumdel 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 Rumdel Construction Cape (Pty) Ltd is confirmed as an order of the Tribunal.
  • Rumdel Construction Cape (Pty) Ltd shall pay an administrative penalty of R17,127,465 to the Commission within 30 days of confirmation of the order.