Malmö municipality is required to pay procurement fine of SEK 75,000 after the municipality’s city administration conducted an illegal direct award of contract regarding recruitment services. The Swedish Competition Authority is now taking the matter to court and is demanding that Malmö municipality be ordered to pay the fine.
In 2017, the municipal executive board in Malmö contracted four different undertakings regarding recruitment, through its city administration. The total value of the contracts was SEK 875,500 which is above the threshold for mandatory publication of contract notices.
In lack of contract notices and exceptions allowing the direct award of contract, the Swedish Competition Authority claims the contract has been awarded through an illegal direct award. The Swedish Competition Authority takes a serious view of such breaches of the law.
”It is important that contracting authorities are careful when predicting their needs so as to ensure they do not break the law when they make purchases,” says Rickard Jermsten, Director-General of the Swedish Competition Authority.
”Making illegal direct awards of contract, where a contract notice has not been published in accordance with the procurement legislation, is a serious breach of the law. If the regulations are followed, chances for the best deal at the best price increase.”
A court is already examining another potential case of illegal direct award of contract that the Swedish Competition Authority claims has been done by the city administration in Malmö municipality.
If the Administrative Court in Malmö approves the Swedish Competition Authority’s claim in that case, the Authority wishes that to be taken into consideration as aggravating circumstances in the present case.
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