Competition Appellate Tribunal rejects appeal in collusion bidding PESCO tender.

PESCO tender

The Competition Appellate Tribunal (CAT) rejected M/s Creative Engineering’s appeal against the Competition Commission of Pakistan’s (CCP) order.

The CCP ruled that Creative Engineering and four other firms engaged in collusive bidding for a PESCO tender, breaching Section 4 of the Competition Act, 2010. Consequently, the CCP fined each entity Rs.2 million, totalling Rs.10 million for the group.

Earlier, the Commission initiated Suo moto proceedings regarding possible bid manipulation in PESCO’s tender for purchasing power distribution equipment. Following an inquiry, it was found that the five undertakings, including Creative Engineering, coordinated to allocate tender quantities among themselves and submit uniform bids, creating an appearance of competitive bidding. The CCP’s ruling confirmed violations of Section 4(1) in conjunction with Sections 4(2)(a), (b), and (e) of the Act 2010.

Creative Engineering contested the Commission’s order at the Competition Appellate Tribunal. However, due to repeated non-appearance on scheduled hearing dates, the Tribunal dismissed the appeal on 27th February 2024 for lack of prosecution.