Malmö carried out new unlawful direct procurements

Malmö Municipality has purchased IT services without prior publication of a contract notice, as the law requires. Other vendors were therefore deprived of the opportunity to submit competitive bids.

The municipality claims that it was necessary to enter into the contract regarding IT services because an internal reorganization and the need for a new delivery model had delayed the procurement of a new agreement. Because these circumstances are within the municipality's control, the Swedish Competition Authority finds that there is no possibility of making an exception to the rules.

“One important element in our regulatory work is that it must lead to improved processes and procedures that ensure that the laws and regulations can be followed,” said Rikard Jermsten, Director General of the Swedish Competition Authority.

“It is important to be frugal with taxpayers’ money and to create conditions that guarantee the best buys.”

The Swedish Competition Authority finds that in this case, there are no grounds for an exception to the regulations regarding publication notification. On the contrary, there are two aggravating factors: Malmö had previously made direct procurements without publication of a contract notice, and the contract that applies to the deal in question lacks an expiration date.

The Swedish Competition Authority has now taken the case to the Supreme Administrative Court in Malmö and is demanding that Malmö Municipality be sentenced to pay SEK 1.2 million in procurement fines.

Read the application, dnr 408/2018 (in Swedish)