The firm admitted to cartel conduct at the High Court in Auckland on Wednesday. Photo: RNZ / Simon Rogers
A second Auckland construction firm has pleaded guilty in the country's first criminal case for cartel conduct.
The firm, which has name suppression, admitted to cartel conduct at the High Court in Auckland on Wednesday.
In exchange for the guilty plea, the company's director, who also has name suppression, would see charges against him withdrawn by the Commerce Commission.
The company faced fines of up to $10 million and would be sentenced next month.
After the most recent guilty plea, the Commission said it withdrew charges against the co-defendant because of an early guilty plea and their state of health.
"Most relevantly, the Commission decided it was not in the public interest to continue to pursue the individual defendant considering his ill health and the guilty plea of his company, in circumstances where the company's conduct involved not only this individual but at least one other individual," a Commission spokesperson said.
"Also relevant are the convictions of the first defendant, [Munesh] Kumar, and his company, MaxBuild," the spokesperson said.
"Mr Kumar admitted he instigated and was the only direct beneficiary of the conduct."
In December, Kumar, also known as Max, of MaxBuild, was sentenced to six months' community detention, 200 hours' community work, and his company was fined $500,000.
The summary of facts stated the defendants rigged public bids for two construction projects in Auckland - the Northern Corridor Improvement project and the Middlemore Railway Bridge repair project.
It said the defendants, on two occasions, agreed that one would bid higher than the other, so that the lower-priced bidder would win, or have a better chance of winning.
After his sentencing last year, Kumar took full responsibility for his actions, saying they were driven by financial pressures.
"We believe this outcome sends a strong message that cartel conduct will not be tolerated, and harsh penalties will be imposed where wrongdoing is proven," the Commission said.
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