The Competition Commission of Pakistan (CCP) has imposed a sum of Rs. 10 million as penalty on five undertakings for engaging in collusive bidding in a tender of Peshawar Electric Supply Company. CCP issued its decision regarding the alleged collusive bidding in a Peshawar Electric Supply Company tender, concluding that five undertakings violated Section 4 of the Competition Act, 2010 by participating in a collusive bidding arrangement in a 2009 tenders. CCP imposed a sum of PKR 10 million on the five undertakings namely, Nam International (Pvt.) Limited, Amin Brothers Engineering (Pvt.) Limited, Creative Engineering (Pvt.) Limited, M.R. Electric Concern (Pvt.) Limited, and Redco Pakistan Limited for the violation. The order has been issued after the conclusion of the hearing into the matter by a two member bench of CCP comprising Mr. Abdul Ghaffar, Member (C&TA) and Dr. Joseph Wilson, Member (MA&IA). Earlier, CCP conducted a suo motto inquiry into the matter after a review of historical data related to PESCO’s tenders raised suspicion of collusive bidding in a particular tender numbered ADB-PESCO-06-2009 LOT III for the procurement of 4759 High Tension Pre-stressed Concrete and 3678 Low Tension Pre-stressed Concrete poles. The inquiry was completed vide a report dated 21 July 2010, which concluded that the above mentioned five undertakings had collusively bid for the tender in question. The inquiry found that out of the five undertakings, four entered into a joint venture agreement to collectively bid for the tender, while the fifth submitted a cover bid to give the impression of competitive bidding. On the recommendation of the report, CCP issued show cause notices to the five undertakings on 2 August 2010. Collusive bidding is an area of priority enforcement for the CCP. This case is the third instance where CCP has taken strict action against undertakings involved in collusive bidding. Prior to this case, CCP imposed a fine of PKR 23 million and 200 million on jute manufacturers and deep sea dredging firms, respectively, for collusive bidding.
The Competition Commission of Pakistan (CCP) has imposed a sum of Rs. 10 million as penalty on five undertakings for engaging in collusive bidding in a tender of Peshawar Electric Supply Company. CCP issued its decision regarding the alleged collusive bidding in a Peshawar Electric Supply Company tender, concluding that five undertakings violated Section 4 of the Competition Act, 2010 by participating in a collusive bidding arrangement in a 2009 tenders.
CCP imposed a sum of PKR 10 million on the five undertakings namely, Nam International (Pvt.) Limited, Amin Brothers Engineering (Pvt.) Limited, Creative Engineering (Pvt.) Limited, M.R. Electric Concern (Pvt.) Limited, and Redco Pakistan Limited for the violation. The order has been issued after the conclusion of the hearing into the matter by a two member bench of CCP comprising Mr. Abdul Ghaffar, Member (C&TA) and Dr. Joseph Wilson, Member (MA&IA).
Earlier, CCP conducted a suo motto inquiry into the matter after a review of historical data related to PESCO’s tenders raised suspicion of collusive bidding in a particular tender numbered ADB-PESCO-06-2009 LOT III for the procurement of 4759 High Tension Pre-stressed Concrete and 3678 Low Tension Pre-stressed Concrete poles. The inquiry was completed vide a report dated 21 July 2010, which concluded that the above mentioned five undertakings had collusively bid for the tender in question. The inquiry found that out of the five undertakings, four entered into a joint venture agreement to collectively bid for the tender, while the fifth submitted a cover bid to give the impression of competitive bidding. On the recommendation of the report, CCP issued show cause notices to the five undertakings on 2 August 2010.
Collusive bidding is an area of priority enforcement for the CCP. This case is the third instance where CCP has taken strict action against undertakings involved in collusive bidding. Prior to this case, CCP imposed a fine of PKR 23 million and 200 million on jute manufacturers and deep sea dredging firms, respectively, for collusive bidding.
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