Entrepreneurs from the municipality of Chorzelów (Podkarpackie voivodeship) were agreeing upon the value of bids submitted in tenders concerned with the supply of bread products for healthcare institutions and a nursing home. The President of UOKiK has penalized those entrepreneurs with the total penalty of nearly PLN 90,000 (ca. 22,000 EUR)

Entrepreneurs who take part in the same tenders and agree upon the value of the bids they submit are acting illegally. The experience of UOKiK shows that bid rigging most frequently takes the form of the so-called “security bid”. The entrepreneurs agree that if two of their bids are found to be the most favorable ones, the winner will withdraw from signing the contract. This means that the more expensive proposal submitted by another bid rigging scheme participant will be chosen. The method described above provides higher profits for dishonest tender participants, at the cost of the employer and competitors. Entrepreneurs are entitled to withdraw from the provision of their services, but such a solution must not be a result of an agreement concluded with another tender participant. UOKiK has recently identified that practices of this type were followed by two entrepreneurs selling bread products and operating in the Podkarpackie voivodeship’s Chorzelów municipality: a company under the name of Młyn Malinie and Stanisława Dziewit - a lady running her own business.

UOKiK acted upon a report filed by Zakład Opieki Zdrowotnej w Dębicy (Healthcare Institution in Dębica) and concerned with illegal practices involving a tender for the supply of bread to the hospital’s kitchen. The winner – Młyn Malinie – withdrew from concluding the contract. Hence, Stanisława Dziewit who was ranked second in the tender, as her bid was by over PLN 22,000 (ca. 5,500 EUR) higher than that of the winner, demanded that the contract be signed with her. UOKiK’s proceedings have indicated that the entrepreneurs referred to above had rigged their bids submitted in at least three tenders organized in the Podkarpackie voivodeship in 2012. The said tenders were concerned with the supply of bread to Healthcare Institutions in Dębica and Strzyżów, as well as to a Nursing Home in Glinik Dolny. In the case of all those tenders, the bids submitted by the participants of the rigging scheme were ranked as two best ones. Then, the winner was refusing to sign the contract without stating any reasons or was not displaying any interest in concluding the contract, and the other participant of the rigging scheme demanded to be entrusted with the performance of the order or was granted the order, as his bid was the runner-up in terms of the price proposed. Contracts were concluded with one of the bid rigging scheme participants by Healthcare Institutions in Strzyżów and the Nursing Home in Glinik Dolny. The Healthcare Institution in Dębica, however, refused to comply and communicated its doubts to UOKiK.     

The existence of the bid rigging scheme was confirmed by strong relationships between its participants. Stanisława Dziewit holds shares in the company of Młyn Malinie, whose management board is chaired, in turn, by her son Artur Dziewit, holding a power of attorney to run and represent the company belonging to Stanisława Dziewit and to make declarations on its behalf. 

The company of Młyn Malinie has been fined, for the violation of anti-monopoly regulations, with a penalty of PLN 88,067 (ca. 22,000 EUR). In the case of Stanisława Dziewit, the penalty equaled PLN 1,308 (ca. 300 EUR). The maximum fine for the participation in an anti-competition scheme may equal 10 per cent of the entrepreneur’s revenues generated in the year preceding the date on which the decision is issued. The decision is not legally binding and the entrepreneurs have appealed against it to court.

Additional information for the media:
Małgorzata Cieloch, Spokesperson for UOKiK
Department of International Relations and Communication
Pl. Powstańców Warszawy 1, 00-950 Warszawa
Phone: +48 22 827 28 92, 55 60 314
Fax +48 22 826 11 86
E-mail: [SCODE]bWFsZ29yemF0YS5jaWVsb2NoQHVva2lrLmdvdi5wbA==[ECODE]