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Media Advisory 2017

File: Promoting construction-industry transformation through partnerships – press briefing on construction industry Settlement Agreement, 13 February 2017

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On 11 October 2016, Government and seven companies in the construction industry signed an agreement to promote transformation in the sector and settle outstanding and potential civil claims between the parties relating to a number of infrastructure projects. The civil claims relate to the infrastructure projects in the period to 2010, that were settled as part of the Fast-Track Settlement process with the Competition Commission.

The Settlement Agreement, also known as the Voluntary Rebuilding Programme (VRP), has three components:

  • Financial contributions by the companies of R1,5 billion for developmental projects (in addition to the R1,4 billion in competition penalties previously imposed by the Competition Tribunal);
  • Commitments to promote transformation and black South African ownership and participation in the sector, through either equity transactions or by partnering with and developing smaller, black-owned construction companies that will result in black-owned companies with a market value of roughly R5 billion in 2024; and
  • Integrity commitments by the company CEOs to take all steps to avoid collusion and corruption in their dealings with the state, their competitors and their customers and to partner with Government in exposing all forms of corruption and tender irregularities.

Following the Settlement Agreement, a number of steps have been taken to give effect to the key principles and undertakings.

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Scam Alert
All Service Providers and Businesses

The Economic Development Department wishes to advise members of the public, particularly those in business, to be alert to a scam utilizing the logo of the Economic Development Department. The fraudsters involved send unsuspecting business operators a Request for Quotations for the provision of Solar Panels.

As the Economic Development Department, we wish to state that we do not have such a project, and therefore beware that the Request for Quotation is not from the Economic Development Department.

Please confirm any request you receive with our Supply Chain Management division on these details 012 394 3579. Report these fraudulent activities to the SAPS or call the Anti Corruption hotline 0800 701 701 or SMS to 39772 or send an email to fraud@economic.gov.za.

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