In today’s headlines with Chereè Kinnear, David Seymour outlines expectations for Pharmac, new speed-camera signage and Tenacious D world tour gets halted.
Two Auckland companies and two directors have appeared in the High Court and will continue to keep their names secret for now as part of New Zealand’s first prosecution for alleged cartel conduct.
The Commerce Commission announced in December that it has filed criminal charges against two constructioncompanies and two directors for alleged bid-rigging of publicly funded projects.
In a statement, the commission said it was the country’s first-ever criminal prosecution for cartel conduct.
After several appearances in the Auckland District Court, lawyers for the defendants appeared in the Auckland High Court today. They earlier entered not guilty pleas and elected trial by jury.
Justice Mathew Downs told their lawyers they would need to make fresh applications if they wanted to keep their names and those of their companies under wraps.
The Judge continued the interim suppression orders to allow the lawyers to file their applications. Justice Downs then set a trial date of October 20 next year for a three-week fixture.
New Zealand's first cartel conduct case has now been moved to the High Court.
The charges followed a commission investigation into allegations the companies and their directors colluded to rig bids for infrastructure projects in Auckland.
The Herald understands the case relates to work being carried out for New Zealand Transport Agency Waka Kotahi (NZTA) by two large construction firms.
A source said the alleged offending had nothing to do with NZTA or the two large construction firms, but two subcontractors.
In the Auckland District Court in December, Judge Brooke Gibson made an interim suppression order for one of the accused directors and companies until the first appearance in court.
Cartel charges carry a maximum sentence of seven years in prison or a fine not exceeding $500,000 for the directors, and a fine not exceeding $10 million for the companies. Cartel conduct was introduced to the Commerce Act in 2021.
Bid-rigging is defined as when there is agreement among bidders about who should win a tender to support the proposed winner, or bidders agree on the prices each party will bid.
Commerce Commission chairman John Small said cartel conduct harms consumers through higher prices or reduced quality and harms other businesses trying to compete fairly.
“Bid-rigging of publicly funded construction contracts loads extra costs on to taxpayers and the New Zealand economy, as conduct of this type undermines fair competition.”
