ANDREY TENISHEV: CARTEL MEMBERS CONVICTED IN THE REPUBLIC OF KHAKASSIA

Court imposed imprisonment up to 16 years to participants of anticompetitive agreements for theft and bribes

It should be reminded that in 2018 the FAS Russia recognized a number of companies violated the Law on Protection of Competition. Economic entities-competitors entered into a cartel agreement the purpose of which was to maintain prices at auctions for the supply of medical equipment.

In addition, collusion was proved with the organizer of the auction - the State institution of the Republic of Khakassia “Interdepartmental Procurement Organization Center”, the purpose of which was to ensure that the cartel participants won the auction.

The implementation of these agreements resulted in maintaining prices and significantly overstating (up to 48%) the initial maximum price of contracts concluded as a result of 29 electronic auctions for the supply of medical devices and medical equipment in the Republic of Khakassia in 2016.

According to the FAS Russia, the total income of participants as a result of winning the auction and concluding government contracts exceeded 800 million rubles.

The total amount of administrative fines against participants in anti-competitive agreements amounted to more than 240 million rubles.

On October 6, Abakan city court of the Republic of Khakassia completed sentencing in the criminal case against the former head of Administration of Head of Republic of Khakassia, employees of the “Interdepartmental Procurement Organization Center” and Directors of the companies involved in the cartel.

They were found guilty of embezzlement and bribery.

The court has appointed 16 years of imprisonment and 85 million rubles of fine for the former head of Administration of Head of Republic of Khakassia, from 9 to 14 years of strict regime colony and fines for the ex-Directors, 9 years of imprisonment and 350 thousand rubles of fine for the ex-Director of the Center for procurement.

“Practice shows that cartel excess profits create a breeding ground for corruption and theft. The violations of the Antimonopoly legislation at the auction go hand-in-hand with these crimes. This case, like a number of others, is a good example. So, Vasily Kornilyev, former Deputy Prime Minister of the Astrakhan region, was sentenced for abuse at auction and embezzlement to imprisonment, Igor Pushkarev, former Mayor of Vladivostok - for abuse and bribery in public procurement, Almaz Zakiev, former Minister of road building of Perm region - for accepting bribes from cartel members, Alexander Vinnikov, former Governor of Jewish Autonomous region - for abuse during the procurement of medical equipment. And this is an incomplete list of cases that we conducted together with law enforcement agencies. All these examples are the result of violations of the Antimonopoly legislation, and the Antimonopoly Authorities made decisions on collusion at the auction,” commented Andrey Tenishev, Head of the Anti-Cartel Department of the FAS Russia.