The Isle of Man Office of Fair Trading has issued an investigation report into potential anti-competitive practices involved in the tendering process for upgrade work at the local authority housing complexes at Marashen Crescent and Reayrt Y Chrink, in Port Erin.
The report, which will be laid before Tynwald tomorrow (16th February), follows an investigation conducted according to the Fair Trading Act.
The report concluded that while there was no evidence of an intention by businesses to act in an anti-competitive manner, such anti-competitive practices did occur in the submission of tender prices for the work at the two complexes.
Following on from subsequent recommendations, the OFT and Treasury have developed an information programme and education campaign to those in the Government who are involved in the supervision of publicly-funded tendered works.
Tendering information for businesses is being reviewed to ensure that those who wish to tender for work understand that the communication of information with other tendering parties prior to bid submission is unacceptable and that any subcontractors who are part of the bid must be clearly identified.
Chairman of the OFT, Bill Henderson MHK, says, "This report has identified a low level of awareness of both competition issues and the role of the OFT amongst staff involved in scrutinising work that Government has put out to tender.
"We will work with Treasury to address this. Bid-rigging, collusion or any form of anti-competitive practice is completely unacceptable and will not be tolerated. A level playing field to enable fair competition between businesses for works paid for by public funds is more important in this current economic climate than ever.
"If any person has any concerns about any of these activities I would urge them to contact the Chief Officer at the OFT to report it".
Copies of the report can be inspected free of charge at the Chief Secretary’s Office or downloaded from either the OFT website or the Chief Secretary’s website. A hard copy can be obtained from the Tynwald Library priced at ?3.40.
