Record fine for contracting authority confirmed
The company awarded public procurement for the cleaning up of environmental damage – removal of gas-oil drilling rigs and probes in a negotiation proceeding without publication, i.e. without open tendering. The total value of the contract was in excess of 4 billion crowns.
The mistake given was made by the former liquidator of the state company, who was removed from office in mid-July 2007. The newly appointed liquidator in his statement as part of the administration proceedings admitted that in this case the legal requirements for the use of negotiation without publication had not been met. Commenting on the contract issuer’s approach in the case in question the Office said that the purpose of the Act is to secure a framework for the efficient expenditure of the contract issuers’ financial resources, which can only be achieved in a transparently conducted contract issuing procedure, i.e. by an approach securing the maximum level of competition, which is the basis for gaining the most favourable conditions for the contracting authority. In announcing an open, close or negotiated proceeding with publication the contract issuer announces to an unlimited number of suppliers his intention of awarding a public contract in this contract issuing procedure. In view of the fact that the contract issuer used for awarding a public procurement a negotiated proceeding without publication, in which the intention of the issuer to award a public procurement is not subject to the requirement for publication, he caused the tender proceedings to be used by only the three suppliers who had been addressed (of which 1 refused to take part in the proceedings).
Highest fines imposed by the Office in the area of public procurement
Contracting authority | Year | No. of proceeding | Fine (in crowns) | In force |
Moravské naftové doly, s.p. | 2007 | S195/07 | 5 000 000 | YES |
City of Zlín | 2007 | S 395/06 | 3 000 000 | YES |
City of Praha | 2002 | S 155/02 | 715 000 | YES |
City of Hradec Králové | 2005 | S 249/05 | 700 000 | YES |
Dopravní společnost Zlín-Otrokovice (Public transport company Zlín-Otrokovice) | 2005 | S 048/05 | 500 000 | YES |
Ministry of labour and social affairs | 2006 | S 213/06 | 500 000 | YES |
City of Karlovy Vary | 2007 | S 169/07 | 500 000 | NO |
External Relations Department of the Office
2023-06-28 / The Office has Published the English Version of Its Annual Report 2022 The Office for the Protection of Competition (hereinafter referred to as "the Office") has published the English version of its Annual report for 2022. In the publication you will find complete statistical...
2022-09-23 / Representatives of the Review Bodies on Public Procurement Discussed in Prague the Application of Sanctions and Exclusion of Suppliers On 23 September 2022, the 11th meeting of the Network of First Instance Review Bodies on Public Procurement took place in Prague as a part of the Czech Presidency of the Council of the European Union...
2022-07-29 / Annual Report 2021 The Office for the Protection of Competition (hereinafter referred to as “the Office”) publishes the English version of its Annual Report for the year 2021, during which it not only celebrated 30...
2022-04-20 / May 2022 Public Procurement Conference The Office for the Protection of Competition is preparing the first year of the May Conference on Public Procurement to be held on 18 and 19 May 2022. The conference will take place at the Brno headquarters...
2021-09-22 / The Office for the Protection of Competition commemorated 30 years of its existence at a celebratory conference The Office for the Protection of Competition (hereinafter referred to as ''the Office'') celebrated 30 years of its existence today with a celebratory conference held at the Liechtenstein Palace in Prague...
2021-09-01 / Annual Report of the Office for the Protection of Competition 2020 The Office for the Protection of Competition has published the Annual Report, summarising its notable activities in 2020 and outlining its agenda for 2021, the year in which the Office celebrates its...
2020-12-02 / Petr Mlsna Appointed as the Chairman of the Office for the Protection of Competition Petr Mlsna was appointed by the President of the Czech Republic, Milos Zeman, as the Chairman of the Office for the Protection of Competition on 1 December 2020
2020-10-07 / Chairman of the Office to resign on 1 December Peter Rafaj shall resign his position of the Chairman of the Office for the Protection of Competition with effect from 1st December 2020. Mr. Rafaj has already informed the President of the Czech Republic...
