COMPANIES CONFESS FRAUD

As soon as a new case of fraud in the Dutch building branch became known, the Dutch authorities decided to set up a clemency arrangement for the reporting of prohibited practices before the first of May this year. Close to 400 Dutch building companies decided to hand in their co-called ‘shadow bookkeeping' before this date. Through this they admit that they have been making forbidden deals during forbidden preliminary talks.

Four years ago a ‘whistle blower' of one of the Dutch building companies published a ‘shadow bookkeeping' which made clear that detailed deals on prices were made during previous consultations, dividing the orders and the budgets of the Dutch state. This hidden bookkeeping proved that around 600 companies in the Dutch road construction branch were taking part in forbidden practices. The startling disclosure lead to a parliamentary inquiry and a huge juridical investigation.

The upcoming weeks the Dutch Cartel Police will make an inventory of the violations of the competition rules and will surely start a number of new fraud investigations in the building branch. Since 2001 the Dutch Cartel Police did many investigations and in six cases cartel agreements were proved. Twenty six companies were involved and they got around 100 million euros of fines. If companies did not report themselves, but turn out to be guilty, they will be locked out from further orders from the Dutch authorities. more features

May 4, 2004