MOSCOW OFAS EXPOSED A BID-RIGGING CARTEL IN PROCUREMENT FOR CAPITAL REPAIR
The companies were exchanging information and deliberately rejected competition with each other
Moscow OFAS exposed elements of an anticompetitive agreement between two auction bidders on capital repair work for the needs of the Ministry of Property and Land Relations of the Tver region. The initial maximum contract prices was 14.8 million RUB.
Two companies from Moscow and the Moscow region took part in the auction: “Sroyincom” Ltd. and “V.A.P.” Ltd. As a result, the contract was concluded with “Sroyincom” Ltd. for13.99 million RUB with 5.5% reduction.
The regulator found that the companies had been exchanging information and deliberately rejected competition between each other. Moscow OFAS opened a case against “Sroyincom” Ltd. and “V.A.P.” Ltd. upon elements of violating Clause 2 Part 1 Article 11 of the Federal Law “On Protection of Competition”.
Part 2 Article 14.32 of the Code on Administrative Violations specifies liability for anticompetitive agreements and punishments in the form of an administrative price up to 50% of the initial auction price for legal entities and up to 50,000 RUB for top executives of companies.