| Thu 16 Jul 2009, 17:44 | | MUR - Murray & Roberts Holdings Limited - Allegations of corrupt practices |
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MUR
MUR
MUR - Murray & Roberts Holdings Limited - Allegations of corrupt practices
MURRAY & ROBERTS HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1948/029826/06
JSE Share Code: MUR
ISIN Code: ZAE000073441
("Murray & Roberts" or "Group")
ALLEGATIONS OF CORRUPT PRACTICES
Murray & Roberts is a highly regarded South African business with significant
global activities and about 35% of its shares held by international investors.
A significant percentage of its order book is with the South African public
sector, which includes some of its involvement in projects associated with the
2010 FIFA Soccer World Cup.
While recognising an expressed public concern at an evident history of
corruption in the global construction industry, often in concert with the
authorities for whom the industry works, it is incumbent on Murray & Roberts
as South Africa`s construction industry leader, to place some perspective on
public allegations of corrupt practices associated with the stadium projects
for the 2010 FIFA Soccer World Cup, which allegations are categorically refuted
insofar as they refer to Murray & Roberts.
In compliance with its legal obligation, Murray & Roberts took an industry lead
before any public concern was expressed on possible corruption in the
construction industry. The Group initiated internal audits across its various
operations and commenced a program of communication and training to assist
employees in understanding competition law and its implications on the Group.
Where any evidence of possible collusion is uncovered, disclosure is made and as
promised publicly by the Group, full cooperation given to the authorities.
Murray & Roberts has been involved only in construction of the Greenpoint
Stadium, as a joint venture partner given the size, complexity and timeframe
required of the project. The joint venture is directly responsible for less than
40% of the total cost of the project. The remainder has been under the direct
control of the City of Cape Town and includes professional team fees, client
costs, selected subcontractors, provisional sums and prime cost Items determined
in advance by the professional team. The project has been substantially
redesigned and construction has been accelerated to overcome delays in award and
the consequence of the redesign.
The original tender pricing for all 2010 FIFA Soccer World Cup stadia was
investigated by the National Intelligence Agency at the request of Government
and as far as Murray & Roberts is aware, no concerns relating to tender
irregularities or pricing were raised. In fact, evidence given by Murray &
Roberts to this enquiry showed underestimation of the capital costs in the
original proposals supporting the 2010 FIFA Soccer World Cup bid.
Murray & Roberts reiterates its commitment to work with the competition
authorities on concerns relating to the construction industry.
Bedfordview
16 July 2009
Sponsor:
Deutsche Securities (SA) (Pty) Ltd
Date: 16/07/2009 17:44:03 Produced by the JSE SENS Department.
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