Lund municipality to receive a procurement fine for illegal direct award

Press release

A claim has been brought against Lund municipality, entailing a SEK 250,000 procurement fine for not having followed the rules for public procurement. The Swedish Competition Authority has brought a claim before the court, requesting a fine to be imposed for an illegal direct award of contract.

Lund municipality announced a procurement of dishwasher detergent and service of dishwashers in the same month that the prevailing agreement ran out. The procurement was later discontinued. As the municipality did not commence the procurement in time, the municipality extended the previous agreement on two occasions so that there would be no break in the supply. The municipality argued that it had ended up in a rush situation as a result of an unforeseen staff turnover.

The Swedish Competition Authority looks at the second extension which, in addition, is still running, and deems that the municipality did not have the right to continue purchasing dishwasher detergent and the service of dishwashers from the same supplier without a prior announcement. The extended agreement therefore constitutes an illegal direct award.

“When it comes to known and unforeseen needs, the procuring authority must take responsibility and announce procurements in good time. If a procuring authority is forced to make an illegal direct award, it must limit the time during which the direct award is valid,” says Dan Sjöblom.

The Swedish Competition authority turns to the Administrative Court in Malmö with a request that the court impose a procurement fine of SEK 250,000 on Lund municipality.

For further information, please contact:
Ola Billger, Head of Communications, tel +46 (0)8-700 15 51 or +46 (0)76-542 15 51
Frida Nordholm, Legal Counsel, tel +46 (0)8-700  15 30
Per Karlsson, Chief Legal Officer, tel +46 (0)76 542 15 56

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