[Keywords]

criminal, collusion in bidding, seek illegitimate benefits, solicit help

[Case summary]

On August 1, 2018, Hainan Qionghai Transport Bureau commissioned Henan Datong Road & Bridge Company to undertake the PMC and engineering supervision of Qionghai county road rebuilding works, one of the six major rural road projects of Hainan Province. Datong Company then hired Guangtong Company to handle the tender. The same year, on October 15, Guangtong Company published tender documents on the National Public Resources Trading Platform (Hainan).

Tan X, the Defendant, approached Zhang Xsheng, legal representative of Hainan No. 2 Construction Engineering Co., Ltd. (Hainan No. 2 Company) in October 2018, claiming that he knew how to get the work, but, as an unqualified party, he needed the name of Hainan No. 2 Company for bidding. Tan X would be in charge of this project himself using the name of Hainan No. 2 Company upon winning the bid, and pay the latter 1.5% of the total project price for using its business name. Meanwhile, Tan X, who was unfamiliar with the bidding process, engaged Hainan No. 2 Company to control the bidding and to find some help to collude at Tan Xs cost. Zhang Xsheng then arranged Ke Xqing, then deputy general manager of Hainan No. 2 Company, to contact Tan X, and arranged Wang X, then head of the operation department of Hainan No. 2 Company, to take charge of the detailed operation. Tan X supplied the phone number of Zhang X, clerk of Guangtong Company, to Wang X, who made use of this channel to obtain restricted tender materials in advance. Wang X then invited Hainan No. 3 Construction Engineering Co., Ltd., Hainan No. 5 Construction Engineering Co., Ltd., Hainan Zhongting Construction Engineering Co., Ltd. and Jiangxi Haoyu Construction Engineering Co., Ltd. to collude in bidding, and promised rewards.

Through the collusion of the five companies above, Hainan No. 2 Company won the second bid section at the price of 43,296,136.64 yuan, and Tan X paid 3,000 5,000 yuan in reward to each of the four accomplice companies respectively, and carried out the engineering in the name of Hainan No. 2 Company.

On December 24, 2022, Tan X was caught.

[Verdict]

I. Tan X, the Defendant, is sentenced to a fixed-term imprisonment of one year and two months, and a fine of 30,000 yuan for having committed the crime of collusion in bidding; and is sentenced to a fixed-term imprisonment of seven years, and a fine of 500,000 yuan for having committed the crime of taking bribes by making use of his influence (In this case, Tan X is also found to have taken bribes). Combining punishment for several crimes, the court decides on a fixed-term imprisonment of eight years, and a fine of 530,000 yuan. (The term of imprisonment starts on the date of execution of the judgement, and the 271 days of custody before the execution of judgement are deducted from the term, therefore, the term shall be May 17, 2023 to August 18, 2030. And the fine shall be paid to the court within ten days after the judgement comes into force.)

II. Of the returned criminal gains in the custody of Dongfang Peoples Procuratorate, 6,400,000 yuan in total, 4,900,000 yuan is confiscated and turned over to the State treasury; of the balance of over 1,500,000 yuan, 530,000 yuan is used to offset Tan Xs fine, and the rest of the balance, more than 970,000 yuan, is returned to Tan X. The Defendant accepted the judgment, and would not appeal, and the judgment has taken effect.

[Significance]

This is a typical case of collusion in bidding, a type of crime that jeopardizes business environment. The defendant and the bidders conspired in quoting bid prices, which seriously harmed the tenderers interests. His act of collusion in bidding has led to losses to State interests and assets, disrupted the normal bidding process, harmed the legitimate interests of lawful bidders, and produced very bad social impact.

The rule of law is the best business environment. The Partys 20th Central Committee requests on the third plenary session to build a marketized, law-based, international first-class business environment. The act of collusion in bidding seriously damages the socialist market economy, and will do severe harms to the market economy and business environment. All market entities should draw lessons from the case, and earnestly refrain from doing the same. The court fully safeguards the fairness in market competition through criminal adjudication, fights crimes, educates and warns market entities not to defy the law in economic activities.