Controversy Surrounding “Monum” Exclusion and Alleged “Cartelist” Connection Rattles Construction Procurement in Latvia

“As SIA “Monum” as a private person is impossible to get to know and the reasons given by the SAB for a negative opinion are not known, one can only hope and trust that the security risks are indeed assessed adequately and legally, without unreasonably influencing the customer’s decision about the winner in the procurement, because by excluding SIA” “Monum”, state expenses for the construction of the specific facility will increase by several million,” Monum explained its position in a written reply.

The head of “High Voltage Network” Irklis stated that even if “Monum” had not been excluded, the offer of the winner “Rolls-Royce Solutions” would be more economically advantageous, even if it is a little more expensive.

The sub-company of the winner is a subsidiary of the “cartelist”.

“Monum” also expressed in its response that the connection of the winner with the notorious “builders’ cartel” was confusing in the procurement. It is about “LEC Construction International”, a subsidiary of “Rolls-Royce Solutions”.

It is a company registered in Germany, which is fully owned by the Latvian company “Latvijas Energoceltnieks”. The Competition Council recognized it as a member of the cartel.

When asked why a German subsidiary company was involved in procurement in Latvia, “Latvijas Energoceltnieks” answered that “Rolls-Royce Solutions” is also registered in Germany, therefore it is logical that the sub-company is also from Germany.

In the meantime, the Procurement Supervision Office admits that this is a possible way to circumvent the ban on “cartelists” entering into procurements that came into force last year. If “Latvijas Energoceltnieks” had been engaged as a sub-company, it would not have been able to win the procurement.

“The difference between subcontractors and the applicant is that the subcontractor is replaced in this case. So here the subcontractor would have to be replaced by the applicant, while if the exclusion rule applied to the applicant himself, then the applicant would be excluded,” said Artis Lapiņš, head of the Procurement Supervision Office.

2024-02-18 19:25:52
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