Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Canada Competition Bureau to consider not-guilty verdicts in government contracts bid-rigging case, (Apr 28, 2015)

The Canada Competition Bureau will consider whether to appeal a jury’s not-guilty verdicts against seven individuals and three companies charged with rigging bids in 2009, the Bureau announced on April 27. The verdicts follow a lengthy trial that was held from September 8, 2014 to April 17, 2015.

In 2005, Public Works and Government Services Canada (PWGSC) officials contacted the Competition Bureau to voice concerns about certain bidding processes. The investigation focused on 10 competitive bidding processes, for contracts worth approximately $67 million. Eight of the contracts, worth $62 million, related to IT services for Canada Border Services Agency (CBSA). The other two contracts related to IT services for Transport Canada (worth $4 million) and PWGSC (worth $1 million). The bidding processes for the CBSA and PWGSC contracts were managed by PWGSC, while Transport Canada managed its own contracting process

In February 2009, the Bureau filed criminal charges against 14 individuals and seven companies. The Bureau found evidence indicating that several IT services companies in the National Capital Region secretly coordinated their bids in an illegal scheme to defraud the government by winning and dividing contracts, while blocking out honest competitors.

To date, two of the individuals have pleaded guilty. Theodore Martin, the former owner of TRM Technologies Inc., was fined $25,000, and a prohibition order has been issued against TRM Technologies. Shannon Lambert of Veritaaq Technology House Inc. pleaded guilty to one count of bid-rigging, was given an absolute discharge for fully cooperating with the Bureau’s investigation, and made a $5,000 donation to charity. In addition, a prohibition order was issued against Veritaaq. Four of those charged have yet to be tried in the case.

In addition to its enforcement activities, the Bureau has given more than 300 educational presentations to procurement agencies across Canada since 2005 in an effort to provide them with the tools necessary to prevent and detect bid-rigging and other cartel activity.

In a statement, John Pecman, Commissioner of Competition, said, "The Bureau and the Public Prosecution Service of Canada will take the time necessary to consider next steps, including whether to appeal the verdicts."

News: Antitrust