MOSCOW OFAS: TWO COMPANIES PARTICIPATED IN A BID-RIGGING CARTEL FOR LIGHTENING WORKS
Moscow OFAS exposed signs of a bid-rigging cartel for landscape lightening works at the crossing of the Moscow Ring Road and the Warsaw Highway for 121.03 million RUB
“Spetsstroi” Ltd. and “SOYUZ” PSK” Ltd. took part in an auction in 2016 organized by Moscow Fuel-and-Energy Department. “Spetsstroi” Ltd. won and the contract was signed for 117.4 m RUB, which is only 3% lower than the initial (maximum) contract price.
Such insignificant price reduction was the result of a refusal by “Spetsstroi” Ltd. and “SOYUZ” PSK” Ltd. to compete with each other. The regulator also established facts of exchanging information and interaction between “Spetsstroi” Ltd. and “SOYUZ” PSK” Ltd. during the auctions.
Moscow OFAS opened a case against “Spetsstroi” Ltd. and “SOYUZ” PSK” Ltd. upon signs of breaching Clause 2 Part 1 Article 11 of the Federal Law “On Protection of Competition”. The case is scheduled for 25 July. If the companies’ guilt is proven, administrative fines can be imposed at up to 50% of the initial auction value.