The National Commission for Markets and Competition (CNMC) has fined four companies and six executives more than 6.5 million euros for distributing tenders from the Ministry of Defense through two Defense cartels, as reported by the agency in a press release.
For its part, the National Commission has placed special emphasis on anti-competitive agreements by which almost a hundred contracts valued at 60 million euros have been affected: 13 framework agreements (AM), their corresponding 81 contracts (CBAM), and another 10 public contracts.
The companies that have been fined in the first cartel have been Comercial Hernando Moreno Cohemo, Tar Defense Logistics & Engineering (SDLE), and Grupo de Ingeniería, Reconstrucción y Recambios, JPG, (JPG) for distributing tenders related to the supply, maintenance and modernization of military vehicles between January 2016 and June 2021.
On the other hand, in the second cartel, Cohemo and Casli have been sanctioned for manipulating a framework agreement to enable the acquisition of military containers between September 2019 and November 2021. In this way, the companies distributed contracts among themselves, for which they carried out non-competition agreements, issued coverage offers, withdrew or did not justify offers and instrumentalized the system of temporary collaboration between companies (UTE).
Anti-competitive agreements valued at 60 million
The companies carried out non-competition agreements, issued coverage offers, withdrew or did not justify offers, and implemented the temporary collaboration system between companies (UTE).
The anti-competitive agreements affected almost a hundred contracts, valued at 60 million euros: 13 framework agreements, their corresponding 81 contracts, and another 10 public contracts. These tenders were related to the maintenance of military vehicles (such as the Centauro, Leopard, Pizarro, BMR, VEC and RG-31) and camping equipment.
This type of anti-competitive agreement supposes a very serious infraction constituting a cartel that can be sanctioned with up to 10% of the business volume of the companies.
Prohibition of contracting
The CNMC considers that the prohibition of contracting with the Public Sector should be applied to companies. However, it appreciates some of the regulatory compliance programs that the sanctioned companies have presented, and has asked them to review them within six months.
If the CNMC considers that the companies continue to have the will to comply and promote the culture of defense of competition, it will propose to the State Public Procurement Advisory Board that it take this into account.
