The New Zealand Commerce Commission (ComCom) has revealed that bid-rigging in public procurement is costing taxpayers an estimated $360 million annually. This alarming figure underscores the importance of the Commission's ongoing enforcement and educational initiatives aimed at combating illegal activities in public procurement.

Chair Dr. John Small emphasized the Commission's commitment to tackling bid-rigging, stating, 'We're coming for you,' addressing those involved in such practices. The Commission has implemented tools like the Anonymous Reporting Tool and a leniency program to encourage reporting and provide immunity for the first party to come forward.

Government agencies in New Zealand spend approximately $51.5 billion each year on procuring goods and services, making the integrity of these processes crucial. Dr. Small noted that cartels in public procurement are a specific enforcement priority, and the Commission is actively investigating various sectors, including real estate and grocery, to address all forms of cartel conduct.

Bid-rigging occurs when bidders collude to determine the winner of a tender, which undermines competition and prevents procurers from achieving the best value for money. The Commerce Act prohibits such cartel conduct, with severe penalties including imprisonment for up to seven years for offenders.