CARTEL SPECIALIZED IN CONSTRUCTION OF SOCIAL FACILITIES IS EXPOSED IN STAVROPOL

A criminal case is opened against corporate executives

Last year, Stavropol OFAS found that “Engineer” Ltd. and “Kavkazstroiinvest” Ltd. violated the Law “On Protection of Competition” (Clause 2 Part 1 Article 11).

Unlawful actions included a cartel at an electronic auction for contractual works for construction of social facilities.

The antimonopoly case was opened upon materials obtained from the Prosecutor’s Office in the Stavropol region.

The Commission of Stavropol OFAS established that “Engineer” Ltd. and “Kavkazstroiinvest” Ltd. refused to compete between themselves at the auction; and further on concluded sub-contract agreements.

Stavropol OFAS forwarded the case decision and materials to the law enforcement bodies. Upon their examination, a criminal case is opened against Director of “Kavkazstroiinvest” Ltd. who is a member of the Legislature [Duma] of the State region, and General Director of “Engineer” Ltd., for an offence specified in Clause “c” Part 2 Article 178 of the Criminal Code of the Russian Federation (actions that caused serious damages or resulted in particularly large income).

Stats-Secretary, Deputy Head of FAS Andrey Tsarikovskiy said: “Construction is on of the most cartelized segments of Russian economy. FAS and its regional bodies constantly work in this area to further expose and prevent adverse consequences”.