Home Workplace News Pavages Maska fined $100,000 for big-rigging scheme related to paving contracts in Quebec

Pavages Maska fined $100,000 for big-rigging scheme related to paving contracts in Quebec

by HR Law Canada

Pavages Maska Inc. has been ordered to pay a $100,000 fine for its involvement in a bid-rigging scheme related to paving contracts in the Granby region of Québec. The contracts were awarded by the ministère des Transports du Québec between 2008 and 2009.

This penalty is part of a settlement filed in the Superior Court of Québec, concluding an investigation by the Competition Bureau. The settlement, reached between the Public Prosecution Service of Canada and Pavages Maska, acknowledges the company’s implementation of a corporate compliance program and control procedures to prevent future infractions. It also notes that the individual involved in the scheme had a limited role and is no longer with the company.

The investigation has also led to criminal charges against two individuals, including a former Pavages Maska executive, for their roles in the bid-rigging scheme. This settlement marks the second such agreement with a road construction company in connection to the same investigation.

Commissioner of Competition, Matthew Boswell, emphasized the Bureau’s commitment to combating bid-rigging, stating, “The settlement reached with Pavages Maska is a reminder that we will continue to vigorously pursue all those who make illegal arrangements instead of competing with each other. Cracking down on bid-rigging is a top priority for the Bureau.”

Pavages Maska is required to make the $100,000 payment to the Receiver General for Canada within the next 30 days.

Background on bid-rigging and the Competition Bureau’s role

Bid-rigging is prohibited under the Competition Act as it disrupts fair competition and inflates the costs of public contracts. When the Competition Bureau uncovers evidence of such criminal activity, it refers the matter to the Public Prosecution Service of Canada, which handles prosecution decisions.

The Bureau offers Immunity and Leniency Programs for individuals or companies involved in illegal agreements, allowing them to cooperate with investigations in exchange for reduced penalties. Additionally, the Bureau’s Whistleblowing Initiative encourages individuals to confidentially report suspected violations of the Competition Act.

The Competition Bureau urges anyone with information on illegal activities such as bid-rigging, price-fixing, market allocation, or supply restriction to report it through their online form.

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