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Combating cartel behaviour in South Africa: lessons learned and the case for asset forfeiture

E. Thomas Sullivan et al.

Journal of Financial Crime2025https://doi.org/10.1108/jfc-09-2024-0288article
ABDC B
Weight
0.37

Abstract

Purpose Economic cartels, often compared to a cancer on competition, harm consumers and economic growth. During the 2010 Fédération Internationale de Football Association (International Federation of Association Football) (FIFA) World Cup, a construction cartel inflated stadium costs by 10%–30%, undermining public procurement and violating section 217 of the Constitution. This study aims to explore alternative measures to better prevent and deter cartel conduct. Design/methodology/approach A critical literature review is applied to examine South Africa’s current approach to addressing bid rigging cartels in public procurement. The analysis primarily focuses on insights derived from the 2010 FIFA Soccer World Cup construction cartel, using this high-profile case as a lens to explore systemic challenges and enforcement gaps within the procurement framework. Findings The analysis revealed that current measures are limited in deterring and preventing economic cartels in South Africa. Existing enforcement tools, such as punitive proceedings, are either insufficiently applied or inadequately enforced. Fines imposed on cartel participants average only 1.3% of a company’s annual turnover, significantly below the statutory cap, and no individuals have been criminally prosecuted for their involvement in economic cartels. The study further suggests that integrating asset forfeiture into the enforcement framework could provide a viable and impactful tool to combat economic cartels by targeting and confiscating the financial gains that incentivise such behaviours. Originality/value Economic cartels are evident in everyday life of South African citizens and have often been researched for the damage they cause, but few studies have examined the measures that are in place to prevent and deter the formation of economic cartels in South Africa.

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https://doi.org/https://doi.org/10.1108/jfc-09-2024-0288

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@article{e.2025,
  title        = {{Combating cartel behaviour in South Africa: lessons learned and the case for asset forfeiture}},
  author       = {E. Thomas Sullivan et al.},
  journal      = {Journal of Financial Crime},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1108/jfc-09-2024-0288},
}

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Combating cartel behaviour in South Africa: lessons learned and the case for asset forfeiture

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Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.