Täby municipality is required to pay procurement fines

Press release

The Swedish Competition Authority requires Täby municipality to pay procurement fines for breach of public procurement rules in connection with the construction of the new Täby Centrum (Täby Centre). The municipality has, on its own initiative, contacted the Competition Authority and informed the Authority of its breach of existing regulations. For this reason, the Competition Authority is lowering its claims.

This is the first time that the Competition Authority has opted for such "discount" in connection with demands for procurement fines due to illegal direct award.

The Competition Authority has filed an application to the Stockholm Administrative Court and submitted its claim for Täby municipality to pay SEK 5 million in procurement fines. The fines are claimed due to Täby municipality, in connection with construction and reconstruction work in Täby centrum, having entered into two verbal agreements with a contractor without prior notification contracts. The two agreements are therefore considered illegal direct awards.

As Täby municipality has contact the Swedish Competition Authority on its own initiative, the Authority is lowering its claims for procurement fines to approximately half of what is normally demanded for these types of breaches. The claimed amount of SEK 5 million corresponds to 3.4 per cent of the contract value.

"Neither the law nor the legislative history regulates what consideration Täby's actions should be given when determining the amount of procurement fines," says the Swedish Competition Authority's Director-General Dan Sjöblom.

"I believe that a contracting authority which discovers serious shortcomings should be encouraged to contact the authority on their own initiative, and this – if we are not yet aware of the issue – should result in lower fine," says Dan Sjöblom.

The two agreements have a total contract value of approximately SEK 140 million. The Swedish Competition Authority has now filed an application to the Administrative Court in Stockholm, and demands that Täby municipality shall be ordered to pay SEK 5 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
Kristoffer Sällfors, Legal Counsel, tel +46 (0)8-700 16 07
Per Karlsson, Head of Legal department, tel +46 (0)8 700 15 56

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