OREANDA-NEWS. April 01, 2013. The Arbitration Court of the Sakhalin Region confirmed legitimacy of the decision and determination of the Office of the Federal Antimonopoly Service in the Sakhalin Region (Sakhalin OFAS Russia) and found that the Municipal Service Department of Yuzhno-Sakhalinsk Town Authority (the Department) violated the Federal Law “On Protection of Competition”.

On 6th December 2012, the Commission of Sakhalin OFAS Russia found that the Department violated Clauses 2 and 8 Part 1 Article 15 of the Federal Law “On Protection of Competition”.

Earlier, the Department organized a tender for the subsidies to compensate expenses for carrying out the works for maintenance and repair of a local motor road network in general use; infrastructure development; protective structures and man-made facilities. The total amount of subsidies reached 91.5 million Rubles.

The Commission of Sakhalin OFAS Russia established that the subject matter of the tender effectively was searching a person (contractor) for the works for maintenance and repair of a local motor road network in general use and developing their infrastructure, which under the Federal Law “On the General Principles of Local Self-Government” is classified as municipal needs. Thus, to determine the contractor, the Municipal Service Department had to organize tender in accordance with No.94 Federal Law “On State Procurement”.

The Commission of Sakhalin OFAS Russia also established that in the tender notice the Department had set the requirements to the bidders regarding production capacities, engineering equipment and other requirements in breach of the Federal Law “On State Procurement”.

Reference:

1. Clauses 2 and 8 Part 1 Article 15 of the Federal Law “On Protection of Competition” prohibits federal executive bodies, the authorities of the constituent territory of the Russian Federation, local self-government bodies, other bodies or organizations exercising the functions of the above bodies, organizations taking part in rendering state or municipal services, as well as state extra-budgetary funds, the Central Bank of the Russian Federation to pass acts and (or) exercise actions (omissions) which lead or can lead to preventing, restricting, eliminating competition, except cases of passing acts and (or) exercising such actions (omissions) specified by the federal laws, in particular, it is prohibited to: unreasonably prevent activities of economic entities, including setting requirements for the goods of economic entities not provided for by the law of the Russian Federation; creating discriminatory conditions.