Islington Tribune - News: Call for enquiry as builders are named in price

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Islington Tribune - by ROISIN GADELRAB
Published: 25 April 2008

Call for inquiry as builders are named in price-rigging probe

PRICE-rigging by building firms may have cost tax-payers tens of millions of pounds, the chairman of a committee investigating Islington Council’s contracts has claimed.
Labour councillor Paul Convery, who chaired an internal review into the Town Hall’s housing capital deals, warned there needs to be a new inquiry after the Office of Fair Trading named nine of its contractors in a list of builders accused of rigging bids for work.
He said: “Islington could have been overcharged tens of millions at the very least even if they have only pushed the prices up a small percentage. I’ve seen contracts where the highest tenders are treble the bottom estimate.”
But Islington’s Liberal Democrat housing chief Councillor Terry Stacy said he was waiting for the OFT to hand over its evidence.
He said: “Until the council is clear whether the OFT’s investigation relates to any Islington contractors it would be irresponsible to bound around figures.”
Cllr Stacy has written to all nine of the named contractors asking for assurances that they have not colluded with other firms to bump up fees. So far, only Kier Islington has replied.
Jane Nelson, managing director of Kier Islington said: “I can categorically confirm that Kier Islington has not been involved in any anti-competitive practices at any time.”

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