PUBLIC PROCUREMENT CARTEL EXPOSED UPON A STATEMENT FROM “ROSSETI” PJSC

The company drew attention to suspicious bidder conduct

“Rosseti” PJSC gave information to FAS about suspicious conduct of several companies at auctions for supplying equipment for the needs of network companies in the Moscow region.

The materials were forwarded to Moscow Regional OFAS, which established that in the course of auctions at the e-site of “Rosseti” PJSC, “ELECTRONPRIBOR” Ltd. and “AbriCom” Ltd. refused to compete and acted in the interests of each other: exchange information and used common infrastructure filing bids and price offers with insignificant price reduction.  

Moscow Regional OFAS found that RIBOR” Ltd. and “AbriCom” Ltd. concluded an oral cartel agreement (Clause 2 Part 1 Article 11 of the Federal Law “On Protection of Competition”) and issued orders to stop violating the antimonopoly law.

“Moscow Regional OFAS constantly exposes and suppresses cartels. Here once again OFAS established a fact of a bid-rigging cartel for supplying equipment to satisfy the needs of grid companies supplying to companies and the population of the Moscow region. The cartel exposed jointly with “Rosseti” PJSC shows that the law is violated everywhere at all types of auctions and tenders, in all sectors. The law imposes serious administrative liability for cartels in the form of turnover fines that can reach up to 50% of the sum of the initial maximum contract prices. Each potential cartel member must remember that punishment for such offences is inevitable”, commented Head of Moscow Regional OFAS, Igor Zolotaryov.  

“Collusion is exposed due to materials supplied by the state-owned company that had paid attention to suspicious conduct of bidders  that could cause inefficient spending of funds”, pointed out Head of FAS Anti-Cartel Department, Andrey Tenishev. “The initiative of the staff of the state company makes a precedent, and we expect that in the future such initiatives will be systemic”.