MOSCOW OFAS EXPOSED A “PARK” CARTEL FOR 1.3 BILLION RUB

Moscow OFAS exposed a cartel between two Moscow companies participated in an auction for restoring linked-ponds in Pokrovskoe–Streshnevo park in Moscow. The contract initial piece was 1.3 billion RUB.

In 2017, Moscow City Department for Natural Areas Management organized an auction for arranging lawns and flower gardens, artificial constructs and a water drainage system, earthwork, piling and start-up and commissioning works, and planting trees and bushes in Pokrovskoe–Streshnevo. “Techstroi Industry” Ltd. and “Trading Centre-XXI c.” Ltd. took part in the auction.

Based on the auction outcome, the contract was concluded with “Techstroi Industry” Ltd. with a 0.5% reduction from the initial contract price. Moscow OFAS found that the companies used common infrastructure and refused to compete, which prevented efficient use of budgetary funds by the customer.

Moscow OFAS recognized that “Techstroi Industry” Ltd. and “Trading Centre-XXI c.” Ltd. concluded an anticompetitive agreement, which is punishable under Part 2 Article 14.32 of the Code of the Russian Federation on Administrative Violations by an administrative fine up to 50% of initial contract price of the auction for legal entities and up to 50,000 RUB for top executives.