MOSCOW OFAS: CARTEL SIGNS EXPOSED AT PROCUREMENTS CARRIED OUT BY THE PENSION FUND

Actions of two companies participating in procurement for the total value exceeding 183 million RUB could have led to maintaining contract prices

Moscow Regional OFAS exposed elements of an anticompetitive agreement between “Transport Solutions” Ltd. and “Bouquet” Ltd. in the course of procurement by the Pension Fund of the Russian Federation.

Data containing information about signs of violating the antimonopoly law were presented by OFAS by the “Anti-Corruption Foundation” Non-Profit Organization.

During auctions for leasing motor vehicles for the total value over 183 million RUB, each company filed one price bid with insignificant price reduction at 1% of the initial maximum contract price, which can maintain procurement prices and indicate that the companies refuse to compete.

An antimonopoly case was opened against the companies upon elements of breaching Clause 2 Part 1 Article 11 of the Federal Law “On Protection of Competition”. Additional evidence and facts about implementing the cartel through other procurement are being collected. The case will be heard in March 2019.

Head of FAS Anti-Cartel Department Andrey Tenishev concluded: “Bid-rigging collusion is the most widespread type of anticompetitive agreements between economic entities. In 2018 more than 85% cartel cases were opened upon signs of bid-rigging collusion. In the context of executing the National Competition Development Plan, countering such agreements is one of the priorities in the work of the antimonopoly authority”.