20 November 2009

Construction Firms on the Rob...


Important document relating to the numerous cases of 'stealing' public money when tenders are put out to private companies. Oh the joy of the 'free' market.


Whole article.

Snippet from article found in the business section of The Times.

The Office of Fair Trading (OFT) today fined the construction industry £129.5 million after an investigation into bid-rigging between companies tendering for public sector building contracts.

Today's fine, which follows a four-year cartel inquiry, is far lower than had been expected. The OFT has the power to impose fines of up to 10 per cent of turnover against a company for cartel activity but today’s penalty is believed to be equivalent to between one per cent to two per cent of each business’s turnover.

In total, 103 companies have been fined for engaging in "illegal anti-competitive bid-rigging activities” on 199 tenders between 2000 and 2006 worth £200 million. The OFT had accused 112 companies of colluding to rig bids on building contracts worth as much as £3 billion, beginning the investigation in 2004 after a complaint from an East Midlands council.

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