South Africa World Cup Stadium Scandal: Construction firms yet to pay collusion fines
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It's been eight years since South Africa hosted the 2010 FIFA World Cup and the construction cartel saga is still not over. In 2015, several construction firms were fined ten percent of their turn-over after being found guilty of collusion by the country's Competition Commission. However, the punishment has since appeared to have fallen of deaf ears in some cases, with four companies yet to cough up. Sias du Plessis has more from Johannesburg.
SIAS DU PLESSIS JOHANNESBURG "According to newspaper reports, several of South Africa's largest construction firms are yet to deliver on their punishment for colluding on the construction costs for 6 of the World Cup stadia. It is reported that the companies Aveng and Murray and Roberts, Group Five, WBHO, Basil Read and Stefanutti Stocks met secretly in 2006 and added $1.1 billion dollars to the overall costs that were paid for by the respective municipalities for the Nelson Mandela Bay Stadium, Peter Mokaba Stadium, Cape Town Stadium, Mbombela Stadium and the stadium behind me, known as Soccer City, as punishment the commission ordered the companies to pay a penalty of 10% of their turn over. But this has fell on deaf ears and 4 of the companies still to this day refuse to pay their penalties. Now trade unions, like Fedusa are calling for an end to the cartel activity by South African businesses and now yet another controversy is threatening to tarnish the Africa's first World Cup 8 years on."
QUESTION: "So in your opinion this won't do damage considering the scandals that have been linked with the 2010 World Cup?"
VELILE MBULI SOUTH AFRICAN FOOTBALL JOURNALIST "It depends how you look at it. Obviously as journalists in this sporting space you might want make it relevant for us to report on it, but in the bigger scheme of things and being realistic, the corporate world these things are happening every day. I don't know, maybe since it has involved big businesses it is not really looked at as corruption. It said to be collusion because if it was really happening in sport where sporting officials were involved it would be called corruption. So why is this not called corruption."
The event in 2010 has had its fair share of controversy, but it has managed to keep its reputation intact despite all the investigations to Jack Warner and briefcases of cash in Paris, but it will be remembered as one of the best events ever staged and although football fans will pay little attention to these latest developments. There is still a lot of work to be done in the business sector to end the rampant collusion amongst companies with monopolies in the country. Thankfully the 2010 World Cup will continue to be looked upon as an event that brought the nation together and celebrated not only football in South Africa, but also on the continent of Africa, Sias du Plessis, CGTN, Johannesburg.