Lithuania's Competition Council on Thursday imposed a maximum fine of 12.2 million euros for a cartel deal among construction companies that took part in Vilnius school and kindergarten renovation tenders.
© DELFI / Audrius Solominas

Panevėžio Statybos Trestas ( PST ), one of Lithuania's largest construction companies, was imposed a fine of 8.514 million euros, while another construction company Irdaiva will have to pay 3.686 million euros – the largest fines ever slammed on Lithuanian construction companies.

PST CEO Dalius Gesevičius disagreed with the reasons behind the fine and the size of the fine, while Irdaiva's CEO Vitas Lopinys also said the company would file an appeal against the fine.

"Of course we will appeal. Without doubt. (…) I think it is stupid. I see this as unfair reasoning – 8.5 million euros out of nowhere. Look at the contracts – they were small-scale," Gesevičius told BNS.

The competition watchdog said PST and Irdaiva had agreed on non-competition in 24 school and kindergarten renovation tenders called by the Vilnius Development Company in 2013-2015. The two companies submitted joint offers regardless of full ability to take part independently, thus reducing the number of tender participants, said the council.

For cartel deals, companies may be imposed a fine of up to 10 percent of their annual revenue. PST's 2016 revenue was 85.136 million euros, while Irdaiva posted revenue of 37.338 million euros last year.

BNS
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