The contractors responsible for building the Cape Town Stadium have reached a R136 million settlement with the City of Cape Town after being embroiled in an eight-year legal battle.
The City has been determined to recoup some of the billions it spent on erecting the 2010 World Cup stadium after the initial construction budget, estimated at R2.9 billion, ballooned to R4.5bn, reports IOL.
It had no option but to continue to meet FIFA’s deadline.
In 2011, however, the Competition Commission found that 15 construction companies had been involved in tender collusion and price-fixing for world cup stadium tenders, including Wilson Bayly Holmes-Ovcon (WBHO), Stefanutti Stocks, Murray & Roberts, and Group Five.
Cape Town Stadium, built in 32 months by Group Five and WBHO, was one of the affected stadiums.
Although the 15 firms reached a settlement agreement and paid a combined R1.5bn in fines, the City of Cape Town lodged a civil claim to recoup some of the money it was overcharged.
In a joint statement released today by the City and WBHO, Stefanutti Stocks, and Aveng Africa, the parties said they had “engaged positively” to reach a settlement.
It includes a payment of R31.3 million by each contractor over the next three years, and a commitment to Corporate Social Investment projects in the city by WBHO and Stefanutti Stocks.
This, said Mayor Geordin Hill-Lewis, includes a minimum R42.5 million social investment of solar energy systems.
He said the City has been the “only metro to succeed in bringing a claim to the point of settlement arising from the FIFA World Cup construction collusion”.