The Competition Commission of Pakistan has carried out raids on the offices of four suppliers accused of colluding in tenders for the supply of transformer repair equipment and materials to various power distribution companies, commonly known as Discos. These coordinated raids were conducted simultaneously in Lahore and Gujranwala as part of an ongoing investigation into suspected anti-competitive practices.
The suppliers, allegedly operating in coordination with other firms, are accused of manipulating tender processes for the supply of transformers and related repair materials, compromising the transparency and fairness of public procurement. The Commission is conducting a detailed inquiry to determine the extent of collusion and its impact on competition within the power sector.
The investigation was triggered by a formal complaint filed by the Lahore Electric Supply Company (LESCO), which raised red flags over the striking similarity in bids submitted by different suppliers. A review of bidding data further revealed a pattern of companies quoting nearly identical prices and strategically dividing contracts among themselves, reinforcing suspicions of collusion.
Such conduct, if proven, constitutes a violation of the Competition Act, which explicitly prohibits bid rigging and other forms of collusion in public procurement. These practices not only undermine healthy market competition but also inflict significant financial damage on the national exchequer by inflating costs and restricting genuine market participation.
Should the inquiry confirm evidence of collusion, the Competition Commission will proceed with formal enforcement measures, including the issuance of show cause notices to the implicated firms.
In an effort to curb similar practices and enhance enforcement, the Commission has urged the public to come forward with information regarding anti-competitive behavior. Individuals who provide accurate and verifiable details may be eligible for a monetary reward ranging from Rs. 200,000 to Rs. 2,000,000.
