Aveng CEO Jardine Quits After ‘Taxing’ Collusion Investigation
“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 fell as much as 3.3 percent to 26.20 rand after the announcement and traded 0.7 percent higher at 27.27 rand as of 11:37 a.m. in Johannesburg. The stock has declined 11 percent this year.
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