Novosibirsk OFAS Exposes Bid-Rigging Scheme
OREANDA-NEWS. September 15, 2014. The Office of the Federal Antimonopoly Service in the Novosoborsk Region (Novosibirsk OFAS Russia) found that “Excellence” ANO UKTs, “Business-Centre” NOU, “Sphera” ANO TsDO, “Prizvanie” NUDO, “Prizvanie” ANO UTs violated the Federal Law “On Protection of Competition” (Clause 2 Part 1 Article 11).
These organizations concluded and took part in agreements that resulted in maintaining prices in the course of electronic auctions for educational services for “Novosibirsk Employment Centre” State Treasure Institution of the Novosibirsk region. These organizations took turn to make each other winners, concluding contracts at the minimum difference from the reserved price.
Deputy Head of Novosibirsk OFAS Russia, Natalia Kamneva, pointed out that cartel participants applied the classical “ram” scheme:
“During the first minutes of an auction two companies reduce the auction price to the damping one, bona fide participants lose interest to participating, the third cartel participant files a price offer insignificantly below the price of a bona fide participant and insignificantly different from the maximum contract price. Then the bids of the first and second companies are recognized unfit to the requirements set in the auction documentation because the companies failed to submit the necessary documents. As a result, the contract is concluded at a high price with the third company”.
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