ISLAMABAD – The Competition Commission of Pakistan (CCP) carried out simultaneous raids on the offices of four suppliers involved in providing transformer reclamation materials to various power distribution companies (DISCOs). The raids took place in Lahore and Gujranwala, as part of an ongoing investigation into cartel-like practices in the procurement process for DISCO tenders.
The suppliers are suspected of colluding to manipulate the bidding process for transformer-related tenders, often submitting identical bids and rotating tenders among themselves. These practices were first brought to the CCP’s attention after the Lahore Electric Supply Company (LESCO) raised concerns over the uniformity of bids submitted by several suppliers.
A review of the bidding data revealed that these suppliers frequently quoted identical prices for their bids, which is a clear indication of collusion in violation of Section 4(2)(e) of the Competition Act, 2010. This section prohibits any form of collusion in tendering, which distorts fair competition and leads to significant financial losses for the public.
If the ongoing enquiry confirms any form of collusion, the CCP will issue show-cause notices to the involved companies. In addition, the CCP has urged the public to report any anti-competitive behavior and is offering whistleblower rewards ranging from Rs200,000 to Rs2,000,000, based on the quality and verifiability of the information provided.
