FAS: A CARTEL COLLUSION FOR 516.5 MILLION RUBLES AT AUCTION WAS REVEALED IN MOSCOW WHEN IMPLEMENTING NATIONAL PROJECTS “HEALTHCARE” AND “DEMOGRAPHY”

The Moscow Regional Office of the FAS Russia has established that CHOP “SCHIT” LLC and CHOO “ELIT OKHRANA” LLC concluded a cartel agreement at the auction*. The auction was held for the right to provide private security services at the facilities of medical organizations of the state healthcare system of the city of Moscow. The companies acted in each other's interests and actually refused to compete during the bidding process.

The initial (maximum) contract price was 516,506,888 rubles.

The Authority initiated a case on the grounds of data from monitoring of compliance with antimonopoly legislation during trade procedures in the implementation of the national projects “Healthcare” and “Demography”.

If found guilty, companies face turnover fines**, and in relation to officials, materials will be sent to law enforcement Authorities to resolve the issue of initiating a criminal case under Article 178 of the Criminal Code of the Russian Federation.

For reference:

*Clause 2 of part 1 of Article 11 of the Law on Protection of Competition

** Article 14.32 of the Administrative Code of the Russian Federation