Several Lithuanian companies have been slapped with fines amounting to 978,000 euros in total for cartel agreements in bidding for municipal projects in three northern districts.
Handshake
© Corbis / Scanpix

The Lithuanian Competition Council said on Thursday it imposed fines of 209,800 euros on Panevezio Melioracija, of 399,200 euros on Pasvalio Melioracija and Jadrana, which are a single economic entity, and of 368,000 euros on Birzu Ranga.

"The companies agreed on prices they would ask for road and street repair and reclamation works in 25 public procurement procedures that were organized by the local governments of the districts of Pasvalys, Panevezys and Birzai between 2012 and 2017," the watchdog said in a press release.

The companies thus helped each other to win contracts in different municipalities. They also agreed not to bid for certain public procurement contracts, thus making way for one of them to win, it said.

The watchdog said the companies admitted to having entered into anti-competitive agreements.

"All this system has existed for many years in all municipalities. CEOs of land reclamation companies know each other from old times and they never have difficulty finding a 'friendly' company to help them bid for contracts," the CEO of one of these companies was quoted as saying in a press release. He was not named.

That anti-competitive activity was brought to light during the Special Investigation Service's investigation into suspected non-transparent public procurement practices at the Panevezys district local government.

As part of the ongoing investigation, which was launched in January 2017, suspicions of abuse of office were brought against Panevezys District Mayor Povilas Zagunis. The man remains in the job after being re-elected as mayor earlier this year.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.

Vilnius to buy 50 new buses for EUR 19 mln

Vilnius will buy 50 new low-floor buses for 19.39 million euros from Adampolis , the Lithuanian...

Viciunai establishes enterprise in Tbilisi hoping to double sales

Viciunu Grupe (Viciunai Group), a business group controlled by Visvaldas Matijosaitis, mayor of...

Changes in option taxation prepared

The Parliament of the Republic of Lithuania approved an amendment to the Law on Personal Income Tax...

Finance Minister: we need to finish started work

Lithuania's Finance Minister Vilius Sapoka has so far declined to say if he plans to continue...

US experts checking Lithuania's egg producer

US experts have on Monday started inspecting Lithuania's egg producer Baltic Egg Production , part of...