The Competition Commission of Pakistan has issued show-cause notices to three companies for prima facie doing collusive bidding in Faisalabad Electric Supply Company’s tender to procure 3,000 units of LT TOU Meters and the action has been started after reviewing details of public procurement carried out by FESCO in the past few years.
The said review is part of the CCP’s Bid Rigging Detection Program for the purpose of identifying and curtailing collusive bidding in public procurement which is very rampant and straining on public exchequer .
The basic enquiry was concluded vide enquiry report July 18, 2011 in which, prima facie, these companies were found guilty. However they are being given one more opportunity of being heard and clarify their position through this show cause notice within fourteen days.
Collusive bidding poses serious concerns for public procurement which falls heavily on the taxpayers ultimately.