By T. Igoumenidi
The semi-autonomous Competition Committee this week refers to a cartel-like framework that dominated the country’s public works contracts as far back as 1981, and one involving practically all of Greece’s contractors, along with a handful of foreign companies.
The relevant competition watchdog referred to 45 construction and engineering companies by name, and practically the entire registry of major Greek enterprises involved in the public works sector.
Charges and evidence of a cartel-dominated public works sector creates the specter of demands by the EU Commission for a return of Community structural funds reaching into the billions of euros. The charges by the Competition Committee come after a recent temporary freeze in funding towards Greece by the Commission, although only 13.5 million euros in financing was blocked in this case.
According to legal circles, if a final report cites damages for the state from cartel practices in Greece’s public works sector, then the EU will demand a return of funding termed as “unimaginably high”.
The Competition Committee is awaiting answers from contractors regarding the charges against them by Sept. 21, in order to finalize its report.
Similar investigations have taken place in Denmark and the Netherlands, with contractors slapped with significant but not exhausting fines.
Contractors named in the preliminary report include companies in the Ellaktor group, J&P Avax, GEK, Terna, AEGEK, Technical Olympic, Intracom, as well as foreign contractors Fcc, Vinci, Hochtief, among others. Several smaller companies are also named.
