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SINGAPORE: Financial fines have been issued to three companies totaling nearly S $ 420,000 for rigging tenders in tenders for maintenance services for swimming pools, spas, fountains and other water features, said the Singapore Competition and Consumers Commission (CCCS). ) on Monday (December 14). .
Bid rigging behavior by CU Water Services, Crystalene Product and Crystal Clear Contractor affected developments including condos and hotels in Singapore, the consumer regulator found.
The CCCS investigation, which began in September 2017, revealed numerous instances of bid rigging conducted between the years 2008 and 2017. Bid rigging occurred between CU Water and Crystalene, and separately between CU Water and Crystal Clear, in tenders called for own developments.
(Graphic: CCCS)
The bid rigging involved a “systematic pattern,” CCCS said, in which either party would request a support quote from the other party, with the support party’s support quote destined to be priced higher than the one. offer from the requesting party.
In some cases, there was an understanding between the parties that it would not be priced lower than the party that was the owner contractor of a privately owned development. The non-incumbent company would approach the incumbent contractor to request a listing price and then provide a supporting quote that is believed to be higher than the incumbent contractor’s quote.
“CCCS found that bid rigging behavior between the parties resulted in no competitive pressure between the parties to present their best offers to potential clients.
(Graphic: CCCS)
“The conduct also created the false impression that the bids submitted by the parties were the result of a competitive bidding process when it was not. As a result, potential clients were unable to obtain competitive bids that could better meet their requirements,” he said . the watchdog.
CCCS said Crystalene and Crystal Clear requested leniency shortly after unannounced inspections were conducted at their business facilities.
The CCCS leniency program offers different levels of benefits to companies depending on whether they are the first to submit information about a cartel and whether investigations have already begun when the company comes forward.
Benefits may include immunity from financial penalties and reduced financial penalties.
Based on the findings established in the infringement decision issued by CCCS, CU Water was fined S $ 308,680, Crystalene was fined S $ 41,541 and Crystal Clear was fined S $ 68,793.
(Graphic: CCCS)
The consumer watchdog said that when imposing financial penalties, it took into account the relevant turnover of each business, the nature and severity of the infringement, and aggravating and mitigating factors.
Crystalene and Crystal Clear received leniency discounts. An additional 10 percent discount was applied to his fines as a result of his admission to the offending conduct and his cooperation with investigations under the Fast Track Procedure, CCCS said.
“Bid rigging is one of the most damaging types of anti-competitive behavior, distorting the competitive bidding process, preventing clients from getting the best value for their bids,” said CCCS CEO Sia Aik Kor .
“Bidders must prepare their bids independently and refrain from participating in any discussion, coordination or plan that is anti-competitive in nature.”
“Any company that is approached to join anti-competitive deals should immediately reject the approach and publicly distance itself from such discussions,” Ms Sia added.
