The ACDP welcomes the DA Mayor De Lille’s commitment made at todays Council meeting, that she will ensure those companies accused of collusion when building the Cape Town Stadium for the 2010 Fifa World Cup pay damages.
She said: “I am proud to announce that the City of Cape Town will be the first to claim damages from construction companies involved in bid rigging in respect of the construction of the Cape Town Stadium, which was opened in 2010.
Bid rigging is the most serious contravention of the Competition Act and is designed to subvert competitive tender processes, leading to increased costs. I have instructed the City’s attorneys to issue summons for the recovery of the damages suffered and they will be attending to the formalities over the next few days. The City’s claim amounts to some R400 million. The damages suffered were at the expense of the public whose rights we are duty bound to protect. We will do so vigorously.”
Her commitment follows a similar one made by the Deputy Mayor, Alderman Nielsen in 2012, the DA Government of the City will ensure they these companies do not get further contracts.
But, in a question I posed to the Mayor in October 2014, asking which of these contractors had been awarded contracts since 2010, if any, her answer was that R313,2million had been awarded since 2011 in only four contracts, to these contractors. This shows that the DA Governments prior commitment had been unilaterally ignored and, rather, that they had been rewarded with even more contracts.
Since the DA Governments previous commitment was ignored, the ACDP will wait and see what comes of this commitment – lets hope its not hollow. I’ll let you know how they perform