Haninge Bostäder required to pay SEK 10 million in procurement fines

Press release

The Swedish Competition Authority demands that the municipal housing company in Haninge, Haninge Bostäder AB, pays procurement fines of SEK 10 million due to them having performed an illegal direct award.

Haninge Bostäder has acquired its subsidiary company Vega Norra Parken AB (Vega) from a private construction company. Vega's only asset at the time of the acquisition was a construction contract that had been entered into with the parent company four days before Vega was bought by Haninge Bostäder. The construction contract involved the construction of approximately 90 rental apartments within the Vega area in Haninge Municipality.

According to the Competition Authority's understanding, the main reason for the takeover was the construction contract that Haninge Bostäder acquired when purchasing Vega. The construction contract is covered by the Public Procurement Act (LOU) and must be advertised and exposed to competition. As the procurement was conducted without prior notice, the acquisition constitutes an illegal direct award. Purchases of shares, in this case the company Vega, are however exempt from the procurement legislation.

"Through these various transactions, Haninge Bostäder is guilty of an illegal direct award. Without advertisement and exposure to competition, it is not possible to say whether the municipal company has made the best deal at the best price," says the Swedish Competition Authority Director-General Dan Sjöblom.

The value of the construction contract is approximately SEK 136 million. The Competition Authority has now turned to the Administrative Court in Stockholm with the demand that Haninge Bostäder should be ordered to pay SEK 10 million in procurement fines.

For further information, please contact:
Jimmy Dominius, Press Officer, tel. +46 (0)8-700 15 80 or
+46 (0)76-542 15 80
Magnus Ehn, Legal Counsel, tel. +46 (0)8-700 16 59
Per Karlsson, Head of Legal Department, tel. +46 (0)76-542 15 56

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