Kemerovo OFAS removed an official from an executive position for violating the antimonopoly law

Kemerovo Regional Arbitration Court supported the OFAS decision

On 24 April 2017, Kemerovo Regional Arbitration Courtsupported a claim of Kemerovo OFAS to disqualify an official for six months. The Head of an organization was held administratively liable for repeated violations of the antimonopoly law.

OFAS already held the official administratively liable in November 2015 and fined him 15,000 RUB; in October-December 2015 he was a Director of a limited liability company from Kemerovo. The ex-Director breached the antimonopoly law, restricting the period for accepting bids for tender on selling property seized in the course of enforcement proceedings.

In autumn 2016 OFAS Commission investigated a similar case and found that organizing a tender the company violated Part 2 Article 17 of the Federal Law “On Protection of Competition”.

Since in 2015-2016 the legal entity possessd several powers under the frame of a government contract of the Office of the Federal State Property Management Agency in the Kemerovo region, the actions of the Director fell under Article 14.9 of the Code on Administrative Violations (restricting competition by the authorities, local self-government bodies). Repeated violations constituted the grounds for the antimonopoly body filing a claim to debar the ex-Director from holding senior positions (Part 2 Article 14.9 of the Code on Administrative Violations).

“The Court allowed the claim of the antimonopoly body and the official was held administratively liable and disqualified for six months. This is the first time when Kemerovo antimonopoly body imposes such a punishment, which is supported by Court”, commented Head of Kemerovo OFAS, Natalia Kukharskaya.

According to Article 17 of the Federal Law “On Protection of Competition”, actions that lead or can lead to preventing, restricting, eliminating competition in the course of quotation requests, invitations to tender are prohibited.

Under Article 14.9 of the Code on Administrative Violations, actions (omissions) of officials of federal executive bodies, the authorities of the subjects of the Russian Federation, local self-government bodies, other bodies and organizations exercising the functions of the above bodies, <…> if such officials were earlier held administratively liable for a similar administrative violation, lead to disqualification for up to three years.