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Basil Read settles on R95m

Johannesburg – The construction group Basil Read (BSR) has reached a settlement agreement in the amount of R95m with the Competition Commission as part of the Commission’s fast track settlement programme‚ it said on Monday.

The amount will be payable in two equal instalments, the first of which is payable 30 days after confirmation of the consent agreement as an order of the Competition Tribunal‚ and the second of which is payable six months after the first payment.

Basil Read provided R75m in its end December 2012 results and the additional R20m will be recorded in the current financial year (FY 2013)‚ it said.

Basil Read said in a statement that the administrative penalty related to a number of isolated‚ past contraventions of the Competition Act.

It related to projects carried out by its roads and civil engineering divisions. None of these projects related to the 2010 FIFA World Cup.

“Basil Read has adopted a rigorous‚ ongoing competition law compliance policy to ensure that incidents like these do not happen again,” the company said.

This includes thorough competition law training of employees throughout the group‚ on a regular basis.

CEO Marius Heyns said he is pleased that the group adopted a proactive stance to dealing with these issues.

“This regrettable chapter in Basil Read’s history has now ended and the company looks forward to continuing to compete effectively‚ efficiently and in compliance with the law,” he said.

The settlement agreement reached with the Competition Commission is slightly higher than the group had anticipated.

Therefore‚ an additional R20m provision will be made in the current financial year (FY13)‚ Heyns added.

At 13.30 on the JSE‚ the company’s share price was up 4c at 820c.

Source: http://www.fin24.com/Companies/Industrial/Basil-Read-settles-on-R95-million-20130624

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