CCP raids suppliers in DISCO tender probe

July 18, 2025 (MLN): The Competition Commission of Pakistan (CCP) has conducted simultaneous raids on the offices of four suppliers involved in the provision of transformer reclamation materials to various power distribution companies (DISCOs).

The raids were carried out in Lahore and Gujranwala, according to the press release issued today.

These companies are suspected of participating in a cartel that manipulated bidding processes for transformer-related tenders.

The raids are part of an ongoing enquiry into bid rigging practices in DISCO procurement, initiated after the Lahore Electric Supply Company (LESCO) raised concerns with the CCP over identical bids submitted by several suppliers.

A review of bidding data revealed that the companies often quoted identical prices and appeared to rotate tenders among themselves.

Such practices fall under Section 4(2)(e) of the Competition Act, 2010, which prohibits collusion in tendering.

Bid rigging not only distorts fair competition but also results in significant financial losses to the public exchequer.

If the enquiry confirms any form of collusion, the CCP will issue show-cause notices to the companies involved.

The CCP has also encouraged the public to report any anti-competitive behavior.

Whistleblowers may be eligible for cash rewards ranging from Rs200,000 to Rs2,000,000, depending on the value and verifiability of the information provided.

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