CCP raids transformer material suppliers over suspected bid rigging

The Competition Commission of Pakistan (CCP) team raided the offices of four suppliers involved in the provision of transformer reclamation materials to various power distribution companies (DISCOs), a CCP statement said on Friday.

The raids were carried out simultaneously in Lahore and Gujranwala.

These companies are suspected of being part of a cartel that manipulated bidding processes for transformer-related tenders. The CCP launched the raids as part of an ongoing enquiry into bid rigging practices in DISCO procurement.

The enquiry was initiated after Lahore Electric Supply Company (LESCO) raised concerns with the CCP regarding identical bids submitted by various suppliers. A review of bidding data revealed that the companies often quoted identical prices and appeared to rotate tenders among themselves.

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Such practices fall under Section 4(2)(e) of the Competition Act, 2010, which prohibits collusion in tendering. Bid rigging not only distorts fair competition but also causes significant financial losses to the public exchequer. If the ongoing enquiry confirms any form of collusion, the CCP will issue show-cause notices to the companies involved.

The CCP has also urged the public to report any such anti-competitive behaviour. Whistleblowers may be eligible for cash rewards ranging from Rs200,000 to Rs2,000,000, depending on the value and verifiability of the information provided.