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Aveng CEO Quits After ‘Taxing’ Collusion Investigation

Aug. 21 (Bloomberg) -- Aveng Ltd., South Africa’s second-biggest builder, said Chief Executive Officer Roger Jardine will leave at the end of the month after a regulatory investigation into collusion in the industry.

“The Competition Commission’s investigation process has been personally very taxing, particularly as I have had to deal with matters that occurred before my appointment and of which I had no personal knowledge,” Jardine, who was CEO for five years, said in a statement from the company today.

Aveng accepted a 307-million rand ($30 million) fine in June after admitting collusion to fix contract prices to build stadiums for the 2010 Soccer World Cup. It was one of 15 companies to reach an agreement with the commission. Full-year headline earnings per share fell by as much as 10 percent for the 12 months ending June because of rising losses at a construction and engineering unit, the company said on Aug. 5.

“While the performance of Aveng’s South African Construction business has been a major disappointment, Mr Jardine added the rest of the group’s business is holding its own under very difficult market conditions,” the company said in the statement.

Aveng rose 1.1 percent to 27.38 rand by the close in Johannesburg. The stock has declined 11 percent this year.

To contact the reporter on this story: Kamlesh Bhuckory in Johannesburg at kbhuckory@bloomberg.net

To contact the editor responsible for this story: Simon Thiel at sthiel1@bloomberg.net

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