Companies that formed a cartel were fined thousands: 'Vilnius Public Transport' was harmed
Two companies engaged in cartel activities during public procurement for spare parts faced significant fines, impacting Vilnius Public Transport.
In a recent investigation, Lithuanian authorities uncovered a cartel between two spare parts suppliers, 'Manado' and 'Parts Ready', who coordinated their bids in public procurement for 'Vilnius Public Transport'. This illicit collusion involved submitting commercial offers from a single computer and predetermined prices, undermining the integrity of public procurement processes. The Competition Council emphasized that such practices lead to fictitious competition, which ultimately harms effective resource utilization by the state.
Jolanta Ivanauskienė, the chairwoman of the Competition Council, underscored the significance of fair competition in public procurement, highlighting that when companies simulate competition, the entire procedure loses its purpose. The negative implications of this collusion extend beyond legal fines; they suggest a systemic failure in oversight of public procurement processes that are essential to ensuring taxpayer money is spent efficiently.
If the involved companies had not coordinated their actions, the procurement processes conducted by 'Vilnius Public Transport' would have ideally yielded genuine competition, likely benefiting the public sector through better pricing and service quality. Thus, the case raises awareness about the importance of vigilance and regulatory oversight in public sector procurement to maintain the integrity of public resources and ensure equitable practices.