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11:30 - 22-April-2008
The move comes after the Office of Fair Trading (OFT) alleged 112 construction firms across England had been involved in “bid-rigging activities” while tendering for public sector contracts.
As the Mail reported last week, the OFT's list includes five Hull-based companies.
However, it also includes the Connaught and Kier construction groups who last year were awarded major £80m contracts by the city council to carry out housing repair and modernisation work.
The two companies, along with the council-owned Kingstown Works, have been given the job of bringing all of Hull's 30,000 council homes up to new Government standards by 2010.
The OFT list also features Haslam Homes, who was recently selected as a lead developer in west Hull by the Gateway regeneration partnership following a competitive bidding process.
Today, Councillor Sean Chaytor, who chairs the city council's audit and efficiency scrutiny commission, said the inquiry was necessary to ensure the process of awarding contracts in Hull had been carried out properly.”
He said: “Connaught and Kier between them hold contracts for two-thirds of the housing repairs in Hull and have both been named by the OFT in a list of companies that may have operated together to push up the cost of their works .
“By calling for an inquiry I am simply responding to concerns expressed by all parties on the council and by members of the public.”
Mike Hudson, the council's corporate director of resources, said: “The council is aware on the interim findings of the OFT and whilst no direct contact has been made with the authority from the OFT, officers are presently assessing available information.
The OFT has said no “assumption of an infringement of the law” by any of 112 companies it has named can be made at this stage.
The firms been given the chance to make oral and written representations which will be taken into account before a final decision is made on whether competition law has been breached.
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The motorist feels somewhat battered from all sides, seeing the oil companies going off with cash in their pockets and the Treasury filling its coffers
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