PRICE COLLUSION AS A TYPE OF CORPORATE FRAUD

05-07-2018 | 14:56

Head of FAS Anti-Cartel Department Andrey Tenishev was a speaker at a Pravo.ru conference on “Countering corporate fraud: the key stages and the main schemes”.  

He gave disappointing statistics about cartelization of Russian economy according to which FAS exposes around 400 cartels every year.

“Such anticompetitive agreements as restricting companies’ participation in procurement, “kick-back” for winning procurement,  fixing excessive contract price, rotating the winners – are just a part of possible risks related to procurement”, pointed out Head of FAS Anti-Cartel Department. 

Andrey Tenishev informed that the current administrative fines are commensurable with the seriousness of violations and sometimes reach several millions for an individual cartel member, which the cumulative fine for all cartel participants can be several billions. 

At the same time Head of FAS Anti-Cartel Department explained: “Business does not need multi-million fines, and the state would not lose if there is healthy competition at tenders and auctions. We think that а preliminary in-house control is an efficient measure and FAS is now working  on making in-house compliance a mitigating circumstance in possible violations and further fines”, said Andrey Tenishev.