好色先生TV

The firm hit with the biggest fine following the Competition and Markets Authority鈥檚 investigation into the demolition sector has said the level of its fine is too high.

Erith was hit with a 拢17.6m penalty last month after being found guilty of bid-rigging and of making so-called compensation payments 鈥� which the CMA said involved designated 鈥榣osers鈥� of contracts being compensated by the winner.

And David Darsey, a former managing director of Erith, who joined the firm in the late 1980s, and is a previous president of the National Federation of Demolition Contractors, was banned for 5 years and 10 months as a result of the probe.

Erith, which was one of two firms to appeal the CMA鈥檚 initial findings last summer, has so far not publicly commented on the fine or the CMA investigation.

But in a letter seen by 好色先生TV and signed by group chairman Steve Darsey, David鈥檚 elder brother, Erith says: 鈥淲e accept the gravity of misconduct and those involved are no longer in our employ. Whilst not disputing the facts our view is that the assessment for any penalties based on turnover of the whole group is unfair and disproportionate and thus we continue discussions with the CMA in an attempt to reach a fair and reasonable settlement.鈥�

The letter was sent just before the CMA made public the level of fines on 23 March against 10 firms caught up in the scandal.

Firms were told months in advance what the likely penalties would be and already Keltbray, fined 拢16m, and Squibb, hit with a 拢2m penalty, have said they will appeal the amounts.

In guidance published by the CMA, fines are set 鈥渢o ensure that the penalty is proportionate and the maximum penalty of 10% of the worldwide turnover of the [firm] is not exceeded鈥�.

Erith, which has been contacted for comment, has not said whether it will appeal the level of its fine but in Darsey鈥檚 letter the firm said 鈥渞obust new systems [introduced] within the business render it impossible for any further infringements of competition law to occur鈥�.

It said the firm has brought in a compliance manager who reports directly to the main board. 鈥淗e has already overseen the completion of over 400 courses relating to competition law amongst all staff involved in marketing, pre-construction, tender submissions and negotiations,鈥� Darsey added.

In its last set of accounts, Erith Holdings posted an 18% fall in turnover to 拢176m for the year to September 2021 although pre-tax profit was up one third to 拢11.3m.