Tyumen OFAS exposed a medical cartel for 1 billion RUB

Tyumen OFAS recognized that 8 suppliers of medical products formed a bid-rigging cartel. The company reached oral arrangements and then took part in 131 auctions. Now each cartel member will be imposed an administrative fine followed by further investigation by the law enforcement bodies

The companies used the same proven scheme in e-auctions. Typically, two companies filed the bids: the “winner” and the “decoy”. Each filed a single price offer. First the offer was presented by the “decoy” and then by the “winner” while the “decoy” did not reduce the price. As a result of such a conduct, the contract value decreased only by 1-2.5%. The companies created a veneer of competition.

According to Head of Tyumen OFAS, Igor Veretennikov, such games at auctions result in profanation of competition and inefficient spending of budgetary funds. He emphasizes: “Competition in procurement should be based on the principle of fair price and non-price competition between bidders to identify the best conditions for supplying goods, carrying out works, rendering services”.

7 Moscow and 1 Tyumen company were involved in the bid-rigging cartel that operated in 2013-2015. The total contract value that they shared exceeded 1 billion RUB.  OFAS plans to transfer all case materials to the Department of the Ministry of Interior in the Tyumen region for further investigation.