Two construction companies and two directors charged with alleged bid rigging

Criminal proceedings have been filed at Auckland District Court. Photo / Nick Reed

RNZ

The Commerce Commission has filed criminal charges against two construction companies and two directors for alleged bid rigging of publicly-funded construction contracts in Auckland.

It’s the country’s first-ever criminal prosecution for cartel conduct, with the criminal proceedings filed in the Auckland District Court.

The commission said it followed an investigation into allegations the unnamed companies and their directors colluded over bids for infrastructure projects in Auckland.

Commission chair John Small said the charges sent a strong message to businesses that the competition watchdog would not tolerate cartel conduct.

The commission said a court date had not yet been scheduled.

A cartel is where two or more businesses agree not to compete with each other by price fixing, allocating markets or customers, or restricting output or acquisition of goods and services.

The commission described bid rigging as a form of price fixing which could also involve allocating markets or customers.

-Additional reporting by NZME.