Government denies involvement in alleged price-fixing probe

THE Government has said it has not been involved in any investigation into alleged price-fixing by construction companies fighting for lucrative public contracts.

Yesterday, the Office of Public Works said it was unaware of the investigation until weekend reports suggested a formalised process of “bid-rigging” was under way.

A report in the Irish Mail on Sunday said there were €2.5 billion worth of contracts under review. The paper said a collection of construction companies were agreeing between them who would submit the lowest bid. This would be rotated to ensure companies got the highest return from the tender process.

The report said gardaí and the Competition Authority had acted on at least 20 warrants as part of this investigation and had made a significant breakthrough.

Yesterday, Martin Whelan, head of public affairs at the Construction Industry Federation, said it had not been asked to participate in any probe involving its members.

“This was the first we heard about it and we are not aware of any investigation of this nature,” he said.

The Garda Press Office said it was not leading the investigation. A press officer said it would be wrong to say gardaí were not involved in the operation, but the investigation in question was being led by the Competition Authority.

For its part, the authority would neither confirm nor deny it was examining issues of bid-rigging in lucrative government contracts.

A spokesman said in all cases of bid-rigging it encourages people to contact its Cartel Immunity Programme. This scheme is designed to protect whistleblowers who come forward with information.

The spokesman said in any case where people feel there are corrupt practices in place they should contact the immunity programme at 087-7631378. This would include anybody with information on tenders for government contracts.

Yesterday, the Government’s central press office said any investigation of this nature would be a matter for the Office of Public Works.

The Office of Public Works handles many construction tenders on the Government’s behalf. However, other departments such as transport, education and health can handle contracts directly.

OPW spokesman George Moir said it had not been asked to assist an inquiry or provide information to the Competition Authority.