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South African cities say they were cheated on World Cup stadiums

Photo: AP

Cape Town may have been overcharged by as much as $220 million for the construction of its stadium.

JOHANNESBURG (AP) -- At least five of South Africa's 2010 World Cup host cities say they want hundreds of millions of dollars back from construction companies because they colluded and inflated prices when building stadiums and other infrastructure for the tournament.

The South African Local Government Association says Johannesburg, Cape Town, Durban, Port Elizabeth and Polokwane were overcharged on World Cup projects and could seek as much as 3.9 billion rand ($394 million) in total in damages.

The potential claims follow a larger settlement by South Africa's Competition Commission, where 15 companies have agreed to pay a total of $147 million in fines for "rigged'' projects between 2006 and 2011.

SALGA, which represents the cities, says it estimates that Cape Town may have been overcharged by up to $220 million for its stadium, which it said cost close to $730 million.

Copyright 2014 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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