KHOODEELAAR! Open letter to the OFT: Will the OFT now say the same thing about £Billion waster CROSSRAIL London scam?

KHOODEELAAR! Open letter to the OFT: Will the OFT now say the same thing about £Billion waster CROSSRAIL London scam?


[More texts herwe soon of KHOODEELAAR! challenge to the Office of Fair Trading, Thusrday 17 April 2008]



From the web site of the London DAILY TELEGRAPH:

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OFT accuses construction firms over cartel
By Angela Monaghan
Last Updated: 10:57am BST 17/04/2008



Government agencies and local authorities are clients who may have overpaid on billions of pounds of building contracts, the Office of Fair Trading has warned, as it accused 112 construction companies of bid-rigging.




Balfour Beatty is among the 112 companies accused of bid-rigging
Following a three-year investigation, the companies have been accused of forming cartels with rivals to bid an inflated price for work on schools, hospitals and other projects to make sure they do not win.

The list of companies accused of bid-rigging include Balfour Beatty, the UK's biggest construction company and builder of the 2012 Olympic aquatics centre in London, and Carillion, the second biggest company.



The full OFT statement and names of the 112 companies
OFT has taken aim since John Fingleton arrived
More on the construction and property sector
Those accused could face fines of up to 10pc of global turnover.

The allegations cover a wide range of construction projects in both the public and private sectors mainly in Yorkshire and Humberside.

The OFT also makes the more serious claim that a handful of the businesses, about 5pc, have produced fake invoices based on agreements with rivals whereby the successful bidder paid a "compensation payment" to the unsuccessful party.

In response to the OFT's statement, Matthew Elliott, chief executive of the TaxPayers' Alliance, said: "If these firms have been ripping off taxpayers it is a disgrace – especially from such prominent and supposedly reputable organisations. Public sector projects are paid for by ordinary people who struggle to make ends meet.

"Any company found to have been price-rigging should be punished harshly, but responsibility also lies with the public officials who were such a soft touch."




During the investigation raids have been carried out on almost 60 companies in the search for evidence and 77 companies have volunteered information in an effort to qualify for leniency if fines are imposed.

In a statement this morning Balfour Beatty said: "The company and its operating businesses have co-operated fully with the OFT in all aspects of its investigation. As a result and subject to ongoing co-operation, the OFT has granted leniency to Balfour Beatty, thus reducing any fines which might ultimately be levied on Balfour Beatty or any of its operating businesses.

"Balfour Beatty is confident that all of its subsidiaries are now fully compliant with the Competition Act. Balfour Beatty neither promotes nor condones anti-competitive behaviour."

The contractors now have two months to make written and oral representations to the OFT before it makes a final decision in early 2009 on whether or not competition law has been infringed and how much the companies will be fined.

The OFT has powers to impose fines of up to 10pc of a company's worldwide turnover.

It claims to have uncovered evidence of bid-rigging involving thousands of tenders with a combined value of almost £3bn.



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