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Ecuador: Regulator finds irregularity in reverse auction process

By  |  July 26, 2016

Ecuador’s market regulator, the Superintendence for the Control of Market Power (SCPM) has said it detected some irregularities in a recent reverse-auction bidding for supplying medication to the country’s health system. The agency will look into alleged anti-competitive practices, and has said it expects to find evidence of crimes against the State.

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    “I have in my hands a statement by the Company Superintendence, dealing with their impressions on the Limerickpharma, Ginsberg and Sionpharm case. But let me tell you, this isn’t the only concern” said SCPM’s head, Pedro Páez.

    Ecuador’s Public Contract Service (Sercop) has revealed that 416 medications were included in the reverse auction, starting at a cost of $220 million USD. The winners, a joint bid by the three companies above, walked away with the contract for $34.8 million USD. However, all three companies operate out of the same building, raising initial suspicions, as they share an address. Furthermore, Sionpharm and Ginsberg both have the same General Manager registered before the country’s Company registry – a Mr. Marco Serrano. These details were enough to prompt the agency into taking action.

    Full Content: El Comercio

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