OREANDA-NEWS. September 28, 2010. The Federal Antimonopoly Service (FAS Russia) initiated a case against Veliky Novgorod City Authority for the signs of violating Parts 1 and 2 Article 17 of the Federal Law “On Protection of Competition” (violating antimonopoly requirements to competitive bidding), reported the press-centre of FAS Russia.

FAS Russia believes that Veliky Novgorod City Authority created preferential conditions for “Novgorodsky Vodocanal” Municipal Unitary Enterprise at an open auction for the water supply works in Derevyanistky residential district because the company was provided some auction documentation, which was not publicly available through the official web-site.

Also, the City Authority required that every bidder should have a license valid until the end of the works period, and unreasonably rejected the bid of “Stroilogika” Ltd., which restricted access to the auction. As a result of such actions, the municipal contract was awarded to “Novgorodsky Vodocanal” Municipal Unitary Enterprise at the initial (maximum) price - 330,000,000 Rub. “Violations in course of the auction resulted in restricting competition as other organizations wishing to bid for the municipal contract were unable to compete by offering a lower contract price”, stated Alexander Kinyov, the Head of the FAS Russia’s Cartel Department.

The case will be considered on 28th October 2010; such violations are punishable under Article 14.9 of the Code on Administrative Violations.