CONSTRUCTION FIRMS TO FACE PUNITIVE ACTION FOR MISCONDUCT

MBABANE – Construction industry firms will now face punitive action for business misconduct. Business misconduct may include elements of anti-competitive behaviour, dodging or short-changing clients (including non-completion of or failure to deliver a project or products), fronting, collusion, price-fixing and other similar acts which have the potential to derail the industry.

This comes after the official launch of the Industry Association Regulatory Policy yesterday. The policy was launched at the Happy Valley Hotel, and came into effect immediately after its initiation. The Chief Executive Officer of the Construction Industry Council (CIC), Nhlanhla Dlamini unpacked some of the clauses of the regulatory policy during the launch.

The CIC has four industry affiliated associations, namely the Eswatini Contractors Association (SCA), Swaziland Association of Architects, Engineers and Surveyors (SAAES), Swaziland Association of Indigenous Engineers (SAIE) and the Building Material and Suppliers Association (BMSA).
All members of the industry association, according to the policy will have to sign a code of conduct that binds them to the industry ethics contained therein.

Regulations

The industry association’s code of conduct shall not be in conflict with the Act and other related pieces of legislation and regulations, as well as the Construction Industry Council’s similar instruments.

As part of its code of conduct, the association is expected to stipulate actions and/or behaviours which are deemed professional misconduct in the industry.
“In addition to reporting to the council where necessary, punitive action to be taken in the event a member is found to have committed business misconduct, shall be specified by each of the industry associations in their code of conduct documents,” states a clause in the policy.

The council has put in place mechanisms for reporting complaints against contractors. According to the policy, the council may investigate such cases, including the use of collaborative processes with the industry associations.

Complaints

The council will also inform industry associations about complaints lodged against their members, in order to ensure that there is constant programming aimed at minimising the occurrence of such complaints.

“At minimum, the executive committee of the industry association shall ensure that one annual general meeting (AGM) where all members of the associations are invited, is held at least once a year and for such meetings, sufficient evidence shall be kept, showing that effort directed at ensuring maximum attendance was made by the executive committee.

Another extraordinary general meeting shall be organised for members apart from the AGM, to discuss industry issues affecting members, since such may not be discussed in detail and exhaustively within an AGM,” the policy states.
The council will have power to penalize the executive committee should this policy be violated, including removing the executive committee from office.

Extraordinary

The Associations are free to hold other extraordinary general meetings should a need arise, and the number of these shall be limited by the association’s constitution.
“Measures aimed at discouraging members from not attending general meetings shall be put in place by the industry association, in order to maximise participation by members in industry matters,” further reads the policy which is available on the CIC’s website.
 The policy also stipulates that the council shall make grant funding available to industry associations through a clearly defined funding framework, in order for the industry associations to effectively carry out its functions especially towards improving the construction industry in Eswatini.

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