Cape Town Seeks World Cup Stadium Construction Collusion Damages

The City of Cape Town filed a civil damages claim against builders Aveng Ltd., Wilson Bayly Holmes-Ovcon Ltd. and Stefanutti Stocks Holdings Ltd. for colluding on a tender for a stadium built for the 2010 FIFA Soccer World Cup.

The claim for at least 428 million rand ($35 million) will be heard in the North Gauteng High Court, Ian Neilson, Cape Town’s executive deputy mayor, said by phone on Monday. The amount claimed is subject to change, he said.

Antitrust authorities fined 15 builders, including the trio facing the Cape Town claim, a total of 1.5 billion rand in June 2013 for rigging contracts for projects including the construction of stadiums for the 2010 World Cup hosted by South Africa. Aveng was fined 307 million rand, WBHO 311 million rand and Stefanutti 307 million rand.

“We don’t have to prove collusion, we just have to prove the amount” the city is owed, Neilson said. The amount claimed was calculated using indicators such as the rates that were charged compared with market prices at the time.

Aveng “will avail itself of the full extent of its legal rights,” the Johannesburg-based company said in an e-mailed response to questions. “No material risk is anticipated based on the summons,” the company said. WBHO “is confident that it can defend the above cases and has not made a provision in this regard,” it said by e-mail. Stefanutti Stocks didn’t immediately respond to a request for comment.

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