Economic Development Minister Ebrahim Patel says government has reached a settlement agreement with the construction companies that colluded around 2010 Fifa World Cup Stadium Projects.
The settlement agreement requires the construction companies involved to set aside funds towards the transformation of industry.
The firms have paid their first tranche of R117 million to the National Revenue Fund, which will see companies pay a total of R1.5 billion towards developmental projects.
Government says that agreements reached with seven construction companies will speed up transformation in the sector, reports EWN's Kevin Brandt.
There will be financial contributions by the company of up to R1.5 billion for development projects. There's also efforts to promote black ownership and developing smaller black-owned companies as well as an integrity commitment.— Kevin Brandt, EWN reporter
Construction companies, including Group Five, WBHO, Basil Read and Stefanutti Stocks, colluded in 2006 to allocate tenders on Fifa World Cup Stadium Projects and agreed on a 17.5% profit margin.
Government is expected to hold an Industry Sector Summit in the coming months to include a wider group of construction firms in a bid to promote transformation and grow the sector.
Take a listen to the EWN update:
This article first appeared on CapeTalk : Construction firms pay first R117M tranche in collusion settlement