FAS AND THE “FOR FAIR PROCUREMENT” PROJECT OF THE ALL-RUSSIAN PEOPLE’S FRONT CONTINUE DECARTELIZING FOOD PRODUCTS SUPPLIES

St Petersburg OFAS opened two cases upon signs of a bid-rigging cartel for supplying food products to St Petersburg social welfare institutions. The cases were initiated upon materials given by the “For Fair Procurement” Project of the All-Russian People’s Front

“Evrospecservice” Ltd., “Specialty Trading Company” Ltd., “EES” Ltd. and “Voskresenie” Ltd., “Floridan” Ltd. and “Vasileostrovsky District KSP” OJSC are suspected of being involved in a bid-rigging cartel for supplies of food products to general education, pre-school and health care facilities in St Petersburg for over 100 million RUB.

The intended agreement scheme: the companies’ top executives made arrangements for an integrated monitoring of auctions. Each CEO made a decision inv view of auction territory, documentation criteria, including a requirement that only small companies can participate in a particular procurement.

The company jointly decided on the price reduction percentage in a particular e-auction; the maximum reduction threshold was fixed in advance, and any changes had to be coordinated with the CEO of a relevant company.

Head of FAS Anti-Cartel Department informed: “Paying careful attention to maintaining competition on socially-important markets, the Federal Antimonopoly Service will always protect the interests of those bidders who rely on quality and competitive ability of their products rather than “other” ways of selling goods  cutting corners”.