By Justine Irish D. Tabile, Reporter
The Philippine Competition Commission (PCC) said it has started the preliminary inquiry on alleged anti-competitive conduct in the procurement of flood control projects.
This is after the commission received the referrals from the Department of Public Works and Highways (DPWH) on Friday.
“The referrals pertain to possible violations of Republic Act No. 10667, or the Philippine Competition Act (PCA), involving St. Timothy Construction Corp., Wawao Builders, IM Construction Corp., and SYMS Construction Trading,” the PCC said in a statement.
It also involves officials and employees of the DPWH Bulacan 1st District Engineering Office, Sunwest, Inc., and DPWH Regional Office IV-B.
According to PCC, the DPWH handed over inspection reports, bid documents, and other relevant documents that may support the PCC Competition Enforcement Office’s ongoing preliminary inquiry into possible bid-rigging and collusion among contractors.
For its part, the commission is already gathering evidence, which includes bid submissions and possible communication exchanges, to determine whether violations of the PCA happened.
Under the law, entities found to engage in anti-competitive practices may face administrative fines depending on the offenses they committed.
“For the first offense, a fine of up to P110 million may be imposed. For the second offense, the fine ranges from P110 million to P275 million. For the third and succeeding offenses, the fine increases to a range of P165 million to P275 million,” the PCC said.
Meanwhile, the PCC said that entities who will voluntarily disclose their involvement in cartel conduct such as bid-rigging, price fixing, market allocation, and output restriction may avail of the commission’s leniency program.
This program offers them immunity from suit or reduced administrative fines if they cooperate with the investigation.
“Only one applicant per violation may be granted full immunity, so early disclosure is encouraged,” it added.