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February 18, 2009 6:00 AM

Corruption North of the Border - Tech Companies Accused of Rigging Bids

By
Matthew Potter
(MoneyWatch)  The government of Canada's Competition Bureau has accused seven companies of conspiring to rig bids for government IT contracts in 2005. The Ottawa Business Journal reports on the accusations here. All of the companies deny the charges by the government. The contracts involved were with either the Canada Border Services Agency and Transport Canada. Two of the companies charged, Donna Cona and Tipacimowin Technology, are aboriginal owned companies and there are special set asides for such entities. Bid rigging is hard to detect and may be hard to prove but can increase the cost to the government for the contracts as the prices offered may not be competitive. All seven of the companies have had contracts with the government to provide services in the past.

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