INBOX : Beating corruption

Bid-rigging, or secret collusive tendering, has become such problem in business, the Commerce Commission has taken measures to widen public knowledge of the issue.
It has released guidelines and two fact sheets to help purchasers spot and report potential breaches. There are also tips on how tender processes can be designed to foil bid-riggers.
“Bid-rigging happens when there is an agreement among all or some of the bidders on which of them should win bid or contract. Bid-rigging and other cartel conduct is prohibited by the Commerce Act,” said Kate Morrison, Commerce Commission general manager, enforcement. Fines are severe, from up to $500,000 for an individual, or up to $10 million for corporate.
“Illegal collusive conduct damages the welfare of New Zealanders by raising prices and negatively affecting other factors such as choice, innovation, quality and investment.”
The guidelines and two fact sheets can be downloaded from the Commission’s website at
www.comcom.govt.nz/bid-rigging.

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