Some big construction companies have been compelled to hand 40 percent of their shares to black South Africans after it was authenticated they participated in corrupt tender processes.
According to reports, government reached an agreement with the construction giants to pay for their corruption sins by helping black owned companies grow their businesses, and selling not fewer than 40 percent of their shares to black people.
Precisely, the companies will choose between mentoring at least three black-owned businesses in skills development and selling at least 40 percent of their civil engineering and construction units to black-controlled enterprises.
The commitment of the agreement for the construction companies was valued at over R9 billion.
The construction firm include Group Five, WBHO, Basil Read, Stefanutti Stocks, Aveng and Murray and Roberts. They will also, be contributing R1.5 billion to government for development projects over the next 12 years.