FAS REVEALED A REPAIR CARTEL IN VOLGOGRAD REGION

The Volgograd Territorial Office of FAS established that the companies Energostroy+, Volgastroyservice, the Regional Department of Capital Construction (UKS) and the General Construction Department of the Federal Penitentiary Service of Russia (GSU FSIN) violated antimonopoly law*. The UKS, the GSU FSIN and organizations concluded an anti-competitive agreement, which resulted in restricting access to the market for capital repairs.

As established by the Territorial Office of FAS, the UKS, as a customer, guided by the Law on Procurement, concluded 6 state contracts with the GSU FSIN for the performance of appropriate repair work for a total amount of 110,080,842 rubles. The contracts were concluded as with the single contractor**.

At the same time, in fact, the repair work bypassing the mandatory bidding procedures was carried out by the companies Energostroy + and Volgastroyservice. Contract agreements with them were concluded by GSU FSIN.

The Authority regarded such actions of organizations, the UKS and the GSU FSIN as the implementation of an anti-competitive agreement.

The organizations and their officials will face fines in accordance with Article 14.32 of the Administrative Code of the Russian Federation if they will be found guilty. Moreover, the Volgograd Territorial Office of FAS will send materials to law enforcement agencies to resolve the issue of initiating a criminal case.

For reference:

* Clause 4 of Article 16 of the Law on Protection of Competition
**In accordance with paragraph 11 of Part 1 of Article 93 of Federal Law №. 44-FZ of  05.04.2013 “On the contract system in the field of procurement of goods, works, services for state and municipal needs” procurement from a single contractor is possible if the work is performed by an institution and (or) an enterprise of the penal enforcement system.