Consequences of infringement
If CCS concludes that there has in fact been an infringement of section 34 of the Competition Act, CCS may, impose a financial penalty not exceeding 10% of the turnover of the business of the relevant bidder in Singapore for each year of infringement, up to a maximum of 3 years. The relevant factors that CCS will consider in deciding the quantum of the penalty are as follows:
- the seriousness of the infringement;
- relevant turnover of the business;
- the duration of the infringement;
- other relevant factors, e.g. deterrent value; and
- any further aggravating or mitigating factors, e.g. number of infringements, co-operation.
Where CCS has issued an infringement decision finding that two or more contractors have rigged bids in connection with a Government tender, CCS may where appropriate, recommend to the Standing Committee on Debarment (“SCOD”) that debarment action be taken. The recommendation may be made as soon as possible after the timeframe for the filing of an appeal against CCS’s infringement decision has expired. Where an appeal has been filed against the CCS’s infringement decision, the recommendation may be made as soon as possible after the resolution of the appeal. The debarment applies to the following:
- Contractors involved in the bid rigging; and
- Directors/partners/sole proprietors of the debarred companies/businesses who are involved in bid rigging.