PCC probes bid rigging charges in government project

MANILA, Philippines — The Philippine Competition Commission (PCC) has started its probe on a possible bid rigging of a government project awarded in 2017.

It is also proceeding with a review of the acquisition of Universal Robina Corp. (URC) of the milling and refining assets of Central Azucarera Don Pedro Inc. (CADPI) as it rejected the voluntary commitments offered by the parties.

Meanwhile, the antitrust body has accepted voluntary commitments proposed by parties in relation to the acquisition by Chelsea Logistics Holdings Corp. of Trans-Asia Shipping Lines Inc.

PCC chairman Arsenio Balisacan, in a press conference yesterday, said the competition watchdog has authorized a preliminary inquiry into a possible bid-rigging of a government project awarded in 2017.

He declined to identify the government project as well as the parties involved, but said it involved “hundreds of millions of pesos.”

The move to initiate a preliminary inquiry is in line with the PCC’s priority to investigate bid-rigging cases with the support of the Office of the Ombudsman and the Commission on Audit.

Balisacan said the PCC recognizes the urgency and significance of ensuring fairness in the competitive process of bidding, as the government’s Build Build Build program for infrastructure development is being implemented.

“Let this be a fair warning to all: taking turns to win projects or manipulating bids is an offense punishable by fines that may reach as high as P250 million, as well as imprisonment of up to seven years. Together with our fellow enforcers and partners in government, we in the PCC are committed to ensuring that Filipino taxpayers receive the full value and worth of every peso they pay,” he said.

He added the PCC is proceeding with a review track of the URC-CADPI transaction as it decided to reject the voluntary commitments offered by the parties.

 “After careful deliberation and consultation with the affected stakeholders, the commission decided last Tuesday to reject the voluntary commitments offered by the parties, as these do not sufficiently address the anticompetitive effects arising from the transaction,” he said.

PCC commissioner Annabelle Asuncion said while some of the commitments are acceptable in the sense they would address identified concerns related to the transaction, in the end, the evaluation of the entire set of commitments did not sufficiently address all the concerns considering the transaction.

“There being no revised voluntary commitments, we are going to review,” she said.

She said URC and CADPI may submit a revised set of commitments.

 “If they still wish, they can submit another set of revised commitments. That is still possible. There is a procedure for that. At the same time, they are also welcome to seek a conference with PCC,” she said.

As for the recently concluded Chelsea-TransAsia-2Go transaction, Balisacan said the PCC has accepted the voluntary commitments proposed by the parties to correct the potential harm posed to the market for passenger and cargo shipping services.

 “Essentially, these commitments serve to provide checks on service quality and prices offered by the company to ensure that consumer welfare will not be reduced by the transaction,” he said.