After identifying signs suggesting collusive conduct by tenderers in the preparation and submission of bids, AS Latvijas valsts meži (LVM) approached the Competition Council (KP) with suspicions of a potential prohibited agreement between procurement participants. This resulted in the discovery of a cartel involving three companies, which have now been fined €163,630.
Upon receiving information from LVM and conducting an investigation, the Competition Council uncovered a three-company cartel across five procurement procedures launched by AS Latvijas valsts meži for energy wood extraction, chipping, storage, and transport services. The council established a framework agreement and decided to fine the companies: SIA AKE LOĢISTIKA, SIA LATGALES MULČA, and SIA MG Auto LTD.
Andris Meirāns, Deputy Director of Timber Production and Supply at LVM, emphasises: “This is not the first time we have approached the Competition Council with suspicions of prohibited agreements between tender participants. LVM will continue to carefully monitor and evaluate every business application received in our competitions to prevent any illegal activity.”
The Competition Council reports:
“The KP received information regarding a potential prohibited agreement between SIA AKE LOĢISTIKA, SIA LATGALES MULČA, and SIA MG Auto LTD from AS Latvijas valsts meži, after the contracting authority identified signs indicating coordinated conduct in the submission of bids. The information received, along with further evidence gathered during the investigation, indicated that the bids prepared by these companies for LVM procurements between 2018 and 2022 were comparable both in content and in the manner of submission, and were not prepared independently. During the investigation, the KP established that in four out of five procurement cases, all company bids were submitted through the Electronic Procurement System (EIS) from the same IP address; furthermore, two of the market participants were registered on the EIS using the same email address. The existence of a prohibited agreement between the companies is further confirmed by the KP’s procedural findings, which revealed that representatives of SIA AKE LOĢISTIKA were involved in preparing and submitting the procurement documentation for all the penalised companies.”