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Office of Competition and Consumer Protection

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Bid rigging - decision of the President of UOKiK

< previous | next > 10.08.2020

Bid rigging - decision of the President of UOKiK
  • President of UOKiK Tomasz Chróstny has issued his decision in a bid rigging case.
  • The companies transporting the pupils were illegally influencing the results of public procurements - if their proposals were the most advantageous, then the winner gave up the contract, so that the second, higher-priced offer of the collusive entity would be selected.

The decision of the President of UOKiK concerns entrepreneurs from Małopolska Province. These are: Transport and Tourism Company "Jakubas" Krystyna Jakubas, Transport and Services Company Magdalena Jakubas and Euro Bus Marek Jakubas.

According to the information gathered by the Office, they jointly tried to influence the outcome of 10 public procurement contracts, of which in six cases they succeeded. The contracting authorities were the communes of Małopolska: Łapanów, Nowy Wi¶nicz, Łapsze Niżne and Wojnicz, as well as educational institutions: the AGH University of Science and Technology in Cracow, the Cardinal Stefan Wyszyński School Complex in Wola Dębińska and the KEN Communal Junior High School No. 2 in Zaborze.

The entrepreneurs have applied a mechanism of bid submission and retraction. If their bids proved to be the most favourable, then the winner of the tender would resign from signing the contract. It failed to provide the missing documents, e.g. the carrier's licence or the certificate issued by the Central Registration and Information on Business (CEIDG). The aim was to select a second, higher-priced offer of another participant in the bid rigging.

- The mechanism of bid submission and retraction is the most common form of bid rigging. I urge the organisers of tenders to pay attention to such situations. I also remind entrepreneurs that this is illegal and is subject to a financial sanction by the President of the Office amounting to up to 10% of the annual turnover, while the injured parties may seek compensation from them before the court – says President of UOKiK Tomasz Chróstny.

The President of UOKiK imposed fines in the total amount of nearly PLN 200 thousand on the participants to the bid rigging. The decision is not yet final. It may be appealed against to the court.

If you are aware of any illicit agreements at your former or present workplace, please report them to UOKiK. The Office runs a programme of acquiring information from anonymous whistle-blowers. Visit https://konkurencja.uokik.gov.pl/sygnalista/ and fill out a simple form. The system we use guarantees full anonymity, also towards the Office.

Additional information for the media:

UOKiK Press Office
Pl. Powstańców Warszawy 1, 00-950 Warszawa, Poland
Phone +48 695 902 088, +48 22 55 60 246
E-mail: [SCODE]Yml1cm9wcmFzb3dlQHVva2lrLmdvdi5wbA==[ECODE]
Twitter: @UOKiKgovPL

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See also:
ICPENICNPolish Aid