Five Brandon, Man., men have been charged in connection with an alleged conspiracy to divide up Manitoba Housing contracts amongst themselves.
The charges stem from a Competition Bureau investigation, with help from Brandon police and Manitoba Housing, that found a group of contractors manipulated at least 89 contracts awarded by the Manitoba Housing and Renewal Corporation between December 2011 and February 2016.
In all, the contracts were worth roughly $4.5 million, the bureau said in a release Monday.
“Manipulating contracts to suppress competition is a serious crime. It results in higher costs for construction projects and is especially concerning when it comes to affordable housing,” commissioner of competition Matthew Boswell said in the release.
“Cracking down on cartels is a top priority for the Competition Bureau, and we are determined to pursue all those who collude to increase their profits by defrauding public funds.”
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The bureau alleges the five contractors divided up contracts for refurbishment services for social housing units among themselves.
The five men have each been charged with conspiracy to commit fraud over $5,000 under the Criminal Code, and conspiracy to allocate contracts under the Competition Act.
Those convicted of price-fixing, allocating markets or restricting supply (also known as conspiracy) may receive fines of up to $25 million and/or be sentenced to a jail term of up to 14 years, the bureau said.
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