Industry News

Cape Town emerges victorious in stadium collusion case

A court has ruled in favour of the City of Cape Town in its case against a number of construction companies that were accused of collusion in the building of Cape Town Stadium prior to the South Africa 2010 Fifa World Cup.

Cape Town Mayor Patricia de Lille previously said the city was seeking R429.4m (€29.9m/$31.9m/£25.5m) in compensation, after the South African government reached a settlement that reportedly results in municipalities not receiving any compensation.

The website has said that de Lille could now seek over R500m in damages from the companies, after the court ruled in favour of the city.

“We have said before that this ‘Tirisano Trust’ is a slush fund set up by national government for the private sector,” de Lille said.

“Instead of compensating municipalities and ratepayers for the R112bn loss that they incurred, this R1.5bn trust has been set up to help the private sector diversify instead of bringing justice to the residents of those municipalities.”