Competition Appellate Tribunal Dismisses Appeal in Collusive Bidding Case over PESCO Tender

The Competition Appellate Tribunal (CAT) has dismissed the appeal filed by M/s Creative Engineering against the order of the Competition Commission of Pakistan (CCP). The CCP held in its order that Creative Engineering and four other undertakings were involved in collusive bidding for a Peshawar Electric Supply Company (PESCO) tender, thus violating Section 4 of the Competition Act, 2010. As a result, the CCP imposed a total penalty of Rs. 10 million on the five entities (Rs. 2 million each) involved in the collusion. Previously, the Commission took suo moto notice of potential bid rigging in PESCO’s tender for the procurement of power distribution equipment. Subsequently, an enquiry was also conducted wherein it was concluded that the five undertakings, including Creative Engineering, colluded to divide the tender quantities amongst themselves and to bid at a uniform price, while giving an impression of a competitive bidding process. The CCP’s order established the violation of Section 4(1) read with Section 4(2) (a), (b) and (e) of theAct 2010. Creative Engineering challenged the Commission’s order before the Competition Appellate Tribunal. However, due to its persistent failure to appear on the scheduled hearing dates, the Tribunal, vide order dated 27 February 2024, dismissed the appeal for non-prosecution.