Violation of rules for participation in state procurements, specifically Bid Rigging, is a serious economic crime aimed at restricting competition and misappropriating public funds. Public procurement in Georgia is strictly regulated, and any prior agreement between bidders that affects the price or the identity of the winner is punishable by law. Charges can be brought against business owners, directors, and public officials who may be involved in the deal. This crime is often qualified as restriction of competition (Article 195-1) or fraud, and is accompanied by high fines and criminal liability.
Defense in such cases requires deep knowledge not only of criminal law but also of public procurement legislation and economic processes. The lawyer's task is to distinguish legitimate business cooperation (e.g., consortiums) from illegal cartel agreements.
What does the Bid Rigging Defense service cover?
Lawyers specializing in economic crimes offer:
- Audit of tender documentation: Analysis of documents uploaded to the electronic procurement system (SPA), pricing mechanisms, and communication.
- Refuting conspiracy theories: Proving that the companies' actions (e.g., similar pricing) were driven by objective market reality rather than secret collusion.
- Interaction with the Competition Agency: Often, a criminal case is preceded by administrative proceedings at the National Competition Agency. The lawyer protects the company's interests at this stage as well.
- Expertise: Conducting financial and economic expertise to refute the amount of alleged damages.
Common Scenarios
Charges are often related to the following schemes:
- Price fixing: Competitors agree on who will offer what price so that a predetermined company wins.
- Bid suppression: Companies deliberately refrain from participating or submit unacceptable bids so that a specific person wins.
- Market allocation: Companies agree not to compete with each other in certain regions or sectors.
- Bid rotation: Companies take turns winning tenders by prior agreement.
Georgian Legislation
The main regulations are the Law on "State Procurement" and the Law on "Competition." Criminal liability is provided for by Article 195-1 of the Criminal Code (Violation of rules for participation in state procurements) and other economic articles. The law prohibits any agreement that restricts competition. Penalties can include fines or imprisonment, as well as deprivation of the right to hold office.
Process and Stages
The defense strategy includes:
- Internal investigation: Establishing facts within the company and interviewing employees.
- Communication with investigative bodies: Cooperating with the financial police or the prosecutor's office.
- Court: Presenting economic arguments that the action was a rational business decision.
Why Legal.ge?
Tender disputes require specific knowledge. Legal.ge allows you to find lawyers specializing in white-collar crimes and public procurement law. They will help you protect your company's reputation and financial interests. Find a defender on Legal.ge.
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