Fine on Sisk cut by more than 90%

A BRITISH competition law appeals body yesterday cut a fine imposed in 2009 on Irish builder Sisk by over 90 per cent.

In September 2009, Britain’s Office of Fair Trade (OFT) fined John Sisk and Son UK and its Irish parent, Sicon, £6.2 million sterling, after it found that the company engaged in illegal tendering practices in 2003. The fine was one of hundreds imposed by the office at the time in the wake of an investigation of tendering practices in the British building industry.

Yesterday, the British Competition Appeal Tribunal cut the fine by 95 per cent to £356,250 and described the original penalty as manifestly disproportionate and excessive.

The tribunal cut a number of fines imposed on other companies that the OFT sanctioned in 2009. Sisk chief executive, Liam Nagle, welcomed the ruling yesterday and said that it vindicated its decision to appeal the fine, which the group regarded as unfair and excessive.

He added that the group has introduced new compliance procedures to ensure that a similar infringement does not occur again. The company’s statement pointed out that the infringement occurred in one tender out of 1,100 that it has made in Britain.

The OFT imposed the fine for cover pricing, which, at the time, it described as a practice involving submitting an artificially high bid for a particular job to give the appearance of competition, rather than the aim of winning the contract.

The office’s investigation covered 4,000 such incidents in Britain. The fines imposed were related to group turnovers.

Sisk is one of the biggest construction and civil engineering groups in the country.