Samara OFAS suppressed a competition-restricting agreement involving the Ministry of Health Care of the Samara region
Samara OFAS found that the Ministry of Health Care of the Samara region, “TsEKh-Zdorovie” Ltd., “SMT” Ltd., “Medsimvol” Ltd., “GI Healthcare” Ltd. and Seredavin Regional Clinical Hospital concluded anticompetitive agreements
In May 2016 there was an open auction in the Samara region for the works on maintenance and repair of expensive (over 4 billion RUB) medical equipment. Prior the auction, representatives of “SMT” Ltd. and “TsEKh-Zdorovie” Ltd. had a meeting upon an initiative of the Ministry of Health Care to “craft” an auction scheme. It enabled “SMT” Ltd. to become the winner, and “TsEKh-Zdorovie” Ltd. – to conclude subcontracts for up to 100 million RUB in exchange of not-participating in the auction and not-filing complaints for FAS.
The arrangements between the Ministry and the companies were reached with involvement of a representative of the equipment producer - “GI Healthcare” Ltd., and its dealer -“Medsimvol” Ltd. and resulted in maintaining the auction prices.
In its turn, the auction organizer - Seredavin Regional Clinical Hospital – coordinated the technical assignments with the bidders before the auction.
The Investigation Department of the Investigation Committee of the Russian Federation in the Samara region held Deputy Health Care Minister of the Samara region criminally liable for abuse of office and is considering initiating criminal proceedings upon elements of a violation under Article 178 of the Criminal Code of the Russian Federation.
“This is one of the largest bid-rigging collusions in health care. The procurement sum exceeded 4 billion RUB. All economic entities involved in an anticompetitive agreement, regardless of whether they won, are to be fined up to 50% of the initial (maximum) price of the auction subject. Officials of the Ministry of Health Care and top executives of economic entities will be held criminally liable”, said Head of FAS Anti-Cartel Department Andrey Tenishev.