ID :
196195
Thu, 07/21/2011 - 07:14
Auther :
Shortlink :
https://oananews.org//node/196195
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FTC probing possible bid rigging over river project
SEOUL, July 21 (Yonhap) -- South Korea's antitrust watchdog has launched an investigation into possible collusion among local builders to clinch bids for a big-budget project to refurbish the nation's four major rivers, its head said Thursday.
The investigation is part of the government's ongoing efforts to tame surging inflation by cracking down on business irregularities that push up prices and cause state funds to go down the drain, said Kim Dong-soo, head of the Fair Trade Commission (FTC).
"We are going to beef up our surveillance and crackdown on price fixing in the bidding process related to public projects during the second half of this year," Kim told reporters after attending a meeting with business leaders in Seoul. "Investigation is now underway in connection with the four-river refurbishment project," he added.
The refurbishment project, a key campaign pledge made by President Lee Myung-bak during his 2007 presidential race, is aimed at restoring the nation's four major rivers -- the Han, Nakdong, Geum and Yeongsan -- for better water management.
The Lee administration argues that the 22 trillion won (US$20.7 billion) project will ensure a stable supply of clean water, help prevent floods and create new jobs despite criticism that it will cause disaster to the nation's ecosystem.
Kim said that the FTC will toughen its punishment on any illegalities related to the bidding process for the project, he added.
The investigation is the latest in a string of similar probes conducted by the corporate watchdog as part of its efforts to help the government's fight against inflation. It is, in particular, paying close attention to price rigging practices in the corporate sector.
During the meeting, meanwhile, Kim said that the FTC is looking into suspicions that some large conglomerates engage in unfair business practices of awarding lucrative contracts to their own subsidiaries.
Kim did not reveal the names of companies being probed but noted that the investigation is underway into "a few" conglomerates. The probe is also focused on abuse of market power of large companies in their business transactions with smaller contractors and suppliers, he added.
The investigation is part of the government's ongoing efforts to tame surging inflation by cracking down on business irregularities that push up prices and cause state funds to go down the drain, said Kim Dong-soo, head of the Fair Trade Commission (FTC).
"We are going to beef up our surveillance and crackdown on price fixing in the bidding process related to public projects during the second half of this year," Kim told reporters after attending a meeting with business leaders in Seoul. "Investigation is now underway in connection with the four-river refurbishment project," he added.
The refurbishment project, a key campaign pledge made by President Lee Myung-bak during his 2007 presidential race, is aimed at restoring the nation's four major rivers -- the Han, Nakdong, Geum and Yeongsan -- for better water management.
The Lee administration argues that the 22 trillion won (US$20.7 billion) project will ensure a stable supply of clean water, help prevent floods and create new jobs despite criticism that it will cause disaster to the nation's ecosystem.
Kim said that the FTC will toughen its punishment on any illegalities related to the bidding process for the project, he added.
The investigation is the latest in a string of similar probes conducted by the corporate watchdog as part of its efforts to help the government's fight against inflation. It is, in particular, paying close attention to price rigging practices in the corporate sector.
During the meeting, meanwhile, Kim said that the FTC is looking into suspicions that some large conglomerates engage in unfair business practices of awarding lucrative contracts to their own subsidiaries.
Kim did not reveal the names of companies being probed but noted that the investigation is underway into "a few" conglomerates. The probe is also focused on abuse of market power of large companies in their business transactions with smaller contractors and suppliers, he added.
