Preventive measures to detect collusion in public procurement is crucial in ensuring best goods and services at the lowest price, hence enhancing efficient allocation of government resources. This was highlighted by the Executive Secretariat of Competition Commission Brunei Darussalam (CCBD) during a Competition Order dialogue session in Ministry of Defence, last week. The dialogue session focused on bid rigging, one of the core anti-competitive conducts prohibited by the Competition Order, was attended by more than 40 officials from various departments, including the procurement division of the Ministry.
The session was part of CCBD on-going effort to enhance awareness about the benefits of competition towards a sustainable economic growth in the long term, through prohibiting anti-competitive conducts by businesses. The session emphasized on the prohibition of collusive tender and how procurement officers can play an important role in preventing and detecting collusive tender, to achieve potential savings.
Officials representing the CCBD underscored that bidding processes are designed to provide competitive areas to achieve better value for money in procurement activities hence facilitate the enhancement of government saving. The competitive process only works, however, when competitors set prices honestly and independently. When competitors collude, prices are inflated and consumers are cheated. The most frequent examples of collusion in public procurement include arrangements in which bidders decide the winner alternately or also known as bid rotation. Other form of bid collusion is when bidders strategically withdraw from tender or submit higher or less attractive bids so the pre-determined winner can be awarded with the tender. The session draw an example of regional case which revealed a bidder preparing and submitting tender document for its competitors to coordinate the bidding prices.
The session followed with interactive discussion on the application of Competition Order and steps to be taken in deterring collusive tender. It was advised for any suspicion on collusive tender to be forwarded to the Executive Secretariat of CCBD for further assessment before decision to launch investigation.
The session ended with presentation of guidelines booklets and easy to understand leaflets entitled “Frequently Asked Questions on Competition Order” and “Understanding and Detecting Bid Rigging in Public Procurement” published by the CCBD.
The session was led by Yang Mulia Dayang Heidi Farah Sia Abdul Rahman, Acting Director of the Department of Competition and Consumer Affairs as the Executive Secretariat to the CCBD.
The Executive Secretariat of CCBD can be reached through email at brunei.competition@jpke.gov.bn or call 2233344 extension 230 or 341 or 343 for any inquiries and request for briefings on the Competition Order.
