CA scarred by dismissed tender rigging cases
Friday, May 22, 2015
Competition Authority case.PIC.KENNEDY RAMOKONE
Available data shows that since its establishment in 2011, the authority has investigated nine anti-competitive cases, which were later referred to the commission. Out of these, the authority won three and withdrew five cases, while two have been lost.
One of the cases that were lost involved two food-supplying companies – Creative Business Solutions and Rabbit Group – that were accused of dividing a tender amongst themselves and colluding to fix prices, in contravention of the Competition Act. The Competition Authority lost the case on technicalities.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...