GATINEAU, QC, Jan. 14, 2025 /CNW/ - Serge Daunais, a former executive for Pavages Maska Inc., pleaded guilty before the Superior Court of Québec in a case of bid-rigging for a paving contract awarded by the Ministère des Transports du Québec (MTQ) in and around the Granby region. He was ordered to pay a $20,000 fine.
Serge Daunais admitted to conspiring with his competitors Construction DJL Inc. and Sintra Inc. to submit rigged bids in response to a call for tenders from the MTQ in 2008. This scheme allowed the three businesses to determine in advance which one would obtain the public contract and to establish the price of the project funded by taxpayers.
It was an investigation by the Competition Bureau that revealed the existence of this illegal agreement and led to criminal charges against Serge Daunais and a second individual, Marcel Roireau, in September 2023. Marcel Roireau was sentenced to twelve months of house arrest after pleading guilty last September under the bid-rigging provisions of the Competition Act.
Quotes
"Bid rigging allows businesses and individuals to bypass market forces and drive up the price of public contracts to their advantage. These illegal agreements between competitors are always to the detriment of taxpayers, and that's why we are tirelessly fighting these anti-competitive practices."
Matthew Boswell
Commissioner of Competition
Quick facts
- Serge Daunais was Vice-President, Secretary and General Manager for Pavages Maska Inc. at the time of the offence. His former employer was ordered to pay $100,000 for rigging public paving contract bids in and around the Granby region.
- Another road construction business involved in this scheme, Construction DJL Inc., has also been ordered to pay $1.5 million for rigging public paving contract bids in the Granby area and its surroundings.
- The investigation by the Competition Bureau was launched following an immunity application from Sintra Inc. submitted through its Immunity and Leniency Program.
- When the Bureau obtains evidence that a criminal offence has been committed, it refers the case to the Public Prosecution Service of Canada (PPSC). The PPSC then decides whether charges should be brought and exercises the authority for any resulting prosecution.
- Bid-rigging is a criminal offence under the Competition Act.
- Any person who believes that they are involved in an illegal agreement with their competitors may submit an application for immunity or leniency in exchange for their cooperation in the Bureau's investigation through the Immunity and Leniency Programs.
- The Bureau also has a Whistleblowing Initiative for individuals who believe they can provide information about a potential violation of the Competition Act. The Bureau will keep the identity of the whistleblower confidential.
- The Bureau strongly encourages anyone who suspects a business or individual of engaging in illegal agreements, such as bid-rigging, price-fixing, market allocation, restricting supply, or wage-fixing and no poaching agreements, to report it through its online complaint form.
Associated links
- Bid-rigging, price-fixing and other agreements between competitors
- Avoiding business collusion and bid-rigging
- Preventing bid-rigging: Tips for tendering authorities
- Bid-rigging: Compete legally!
- One-year sentence for Construction DJL executive who rigged bids for public contracts in Québec
- Pavages Maska Inc. to pay $100,000 for bid-rigging in the Granby region
- Construction DJL Inc. to pay $1.5 million for bid-rigging on public contracts in Québec
- The Competition Bureau lays charges against two executives in a bid-rigging case in Montérégie
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The Competition Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses. Competition drives lower prices and innovation while fueling economic growth.
SOURCE Competition Bureau
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