This invitation is aimed at incentivising construction firms to fully disclose to the Commission their involvement in price fixing, market division and bid rigging in return for a favourable settlement in so far as penalties are concerned.
Why is this a good offer?
Ordinarily the Commission is entitled to recommend to the Competition Tribunal that a penalty of up to 10% of previous financial year turnover in imports and exports from South Africa be imposed in respect of each contravention of the Competition Act. In terms of the settlement offer, a construction firm may now look forward to a maximum penalty of 4% of turnover for one to four contraventions, 7% of turnover for five to 12 contraventions, 10% of turnover for 13 to 22 contraventions and 12% of turnover for 23 or more contraventions.
Applications must reach the Commission by no later than Friday, 15 April 2011 at 12:00pm.