Islington investigates three contractors fined by OFT for price fixing
Council probes refurb deals
Islington Council has launched an investigation into decent homes deals agreed between its arm’s-length management organisation and three contractors named in the Office of Fair Trading’s price fixing probe.
Kier, Balfour Beatty and Apollo Group have been ordered by the competition watchdog to pay fines of £17.9 million, £5.2 million and £2.15 million respectively. All three have been awarded contracts for housing refurbishment work by the north London authority’s ALMO Homes for Islington, which is investing £500 million to improve 29,500 homes. None of the contracts covered by the OFT’s probe were for HFI deals.
Andrew Cornwell, chair of Islington’s overview committee, agreed to the investigation following a suggestion from Catherine West, leader of the council’s Labour group. In an email seen by Inside Housing, Ms West says: ‘In the light of the OFT revelations about Kier, Apollo and Balfour Beatty being involved in price fixing, I would be very grateful if you would consider requesting a report from officers to the overview committee about the implications of the findings on Islington tenants and leaseholders.’
A spokesperson for Islington Council confirmed that officers were preparing a report for the committee.
A spokesperson for Homes for Islington said it previously found ‘no evidence’ that any of its contractors were involved in price fixing.
Apollo Group has denied any involvement in price fixing. ‘Since the OFT’s investigation was announced in April 2008, Apollo has repeatedly made clear that it believes the allegations against it to be wholly unfounded,’ it said in September when its fine was made public.
Kier Group has said it was disappointed at the level of its fine given that its infringements were at ‘the lower level of the offences committed’.
A spokesperson for Balfour Beatty said its fine related to activities of its subsidiary Mansell before it had been acquired. ‘Balfour Beatty neither promotes nor condones anti-competitive behaviour,’ she added.
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Readers' comments (2)
Peter | 23/10/2009 5:14 pm
What these contractors did is scandalous and all Local Authorities who have contracts with any companies involved must terminate their contracts forthwith.
This is corrupt practice and a clear unequivocal statement must issued that the LAs will not tolerate such conduct.
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charles todd | 28/08/2010 8:50 am
yes hang them high rob and cheat the people who they are supposed to take care of they all should be removed from power that they have self imposed on the people of Islington sack the lot of them now no exceptions get them out now and stop covering it up thieves the lot of them they dont do the job they make me sick robbing poor work endangering lives destroy lives split up family's and to get any sort of justice is impossible using corruption in courts not a nice way to live.its not just price fixing they get up to its a lot worse. asbestos in flats yes lots of it they dont tell you its there and when its found slow and half hearted to clean it out and pay four times to do the same job if you know that it is there get it all out then clean up. the stupid attitude try to hide it from the tenants. and the workers
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