Abstract

Public procurement plays an important role in economy of every country. The vast amounts of money awarded in public contracts, however, make public procurement extremely vulnerable to collusion among competitors and corruption of public officials. Although it is recognized that effective enforcement of these offences requires tight cooperation between competition agencies and other law enforcement authorities, there is still a lot of potential for improvement in many jurisdictions. The objective of this paper is to suggest key features of this cooperation which would facilitate effective catching of both colluding competitors and corrupt public officials involved in bid rigging schemes.

Highlights

  • In a speech delivered at the Symposium on the Revised World Trade ­Organization Agreement on Government Procurement in September 2015, Director-General of the WTO Roberto Azevêdo said: “­Government procurement is hugely significant, in economic terms, and because of the impact it has on both trade and development.”[1]Procurement of goods and services by the public sector represents an immensely important part of economy

  • The objective of this paper is to suggest key features of this cooperation which would facilitate effective catching of both colluding competitors and corrupt public officials involved in bid rigging schemes

  • Experience from various jurisdictions shows that public procurement is especially prone to collusion among competitors, who conspire to remove the element of competition from public tenders

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Summary

INTRODUCTION

In a speech delivered at the Symposium on the Revised World Trade ­Organization (hereinafter referred to as “WTO”) Agreement on Government Procurement in September 2015, Director-General of the WTO Roberto Azevêdo said: “­Government procurement is hugely significant, in economic terms, and because of the impact it has on both trade and development.”[1]. The main objective of this paper is to identify best practices in cooperation between competition agencies and other law enforcement authorities and suggest a model system of this cooperation which would facilitate effective catching of both colluding competitors and corrupt public officials involved in bid rigging schemes.

GENERAL OVERVIEW
COMMON FORMS OF BID RIGGING ARRANGEMENTS
ANTITRUST LAWS AND BID RIGGING
EXAMPLE OF BID RIGGING – GAS INSULATED SWITCHGEAR
32 A summary of facts of the case is available for example here
INTERPLAY BETWEEN CORRUPTION AND BID RIGGING
ANTITRUST LAWS AND CORRUPTION OF PUBLIC OFFICIALS
REASONS FOR COOPERATION
EXAMPLES OF COOPERATION IN SELECTED JURISDICTIONS
MODEL SYSTEM OF COORDINATION
Findings
CONCLUSION
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