NON-COMPETITIVE ADVANTAGES FOR AN INVESTOR

Samara OFAS found that the Government of the Samara region, “SMT” Ltd. and “Heart Clinic” International Medical Centre” Ltd. are guilty of an anticompetitive agreement

In 2014, Samara Government and “SMT” Ltd. signed an Investment Memorandum, the subject of which was construction and commissioning a cardio-surgical centre. On its turn, the Government of the Samara region promised a broad package of state guarantees and benefits to the Centre.

In the course of executing the Memorandum, a legal entity was founded - “Heart Clinic” International Medical Centre” Ltd. In accord with the Memorandum conditions, the Regional Government undertook obligations to provide preferential conditions of market operation to the medical facility.

Such preferences include an obligation of the Regional Government to create conditions for return on investment in the project by ensuring a flow of patients referred from medical and preventive treatment facilities in the Samara region, and paying the lost income to the Centre.

“Heart Clinic” International Medical Centre” Ltd. is not commissioned so far.

In February 2017, Samara OFAS made a decision on another agreement  where “SMT” Ltd., “TsEKh-Zdorovie” Ltd., “Medsymbol” Ltd., the Ministry of Healthcare of the Samara region, “GE Healthcare” Ltd. and Samara Regional Clinical Hospital named after Serdavin participated. The above entities violated Clause 2 Part 1 Article 11, Article 16 and Clauses 1 and 2 Part 1 Article 17 of the Federal Law “On Protection of Competition” at an auction for maintenance and repair of expensive medical equipment installed in public budgetary healthcare facilities of the Samara region. This decision of the antimonopoly body formed the grounds for opening a criminal case.

The Court is now considering a criminal case against Director of “SMT” Ltd. and his Deputy as well as staff of “SMT” Ltd. and “GE Healthcare” Ltd. accused under Articles 178, 204 of the Criminal Code of the Russian Federation, Deputy Minister of Healthcare of the Samara region and Head of A ministerial Department accused under Part 1 Article 286 and Articles 33, 178 of the Criminal Code.

Head of FAS Anti-Cartel Department, Andrey Tenishev pointed out: “One of the most important FAS goals today is to control compliance with competitive procedures and rules in fulfilling national projects, one of which is “Healthcare”. Those companies should execute national projects that propose the best conditions at competitive bidding rather than those that know how to make arrangements”.