CCPC bid rigging crackdown targets €275bn in State project spending

Hundreds of millions at stake as watchdog targets bid rigging

The watchdog outlined its priorities in a new three-year enforcement strategy discussed by Cabinet on Tuesday. 

Bid rigging will be a major focus, particularly as the Government prepares to spend €275 billion rebuilding Ireland's roads, housing and utilities.

Companies involved in bid rigging secretly agree which business should win a contract, removing genuine competition from the tender process. 

The CCPC estimates that these arrangements can push project costs up by as much as 30%, leaving taxpayers to cover the difference.

Chairman Brian McHugh said the losses could amount to hundreds of millions of euro, and possibly more.

“That is the scale of harm that's out there,” he told the briefing.

Cartel crackdown could be held back by staff and funding shortages

The commission wants to pursue as many suspected cartel cases as its resources will allow.

McHugh said it already has a number of investigations underway, but warned that taking on more work will require additional funding and staff.

“We really want to take on as many cases as possible but the reality is that will take resources,” he said. “The more resources we have, the more cases we will take [on].”

Bringing these cases to a conclusion can also be difficult. Investigations often take time, while large companies may challenge the process or appeal against any penalties they receive.

The CCPC has increased its workforce by 56 people since its previous strategy was introduced. 

Alongside tackling cartels, it will continue monitoring grocery and energy costs, which remain a concern for households.

The watchdog has also examined rising supermarket prices. However, The Irish Times reported that it does not consider current increases in Ireland to be the result of a “dysfunctional market”.