Bid-rigging: local authorities may launch action against accused companies

Local authorities are reviewing whether to launch action against companies’ accused of bid-rigging by the Office of Fair Trading.

A number of councils have recently contacted David Greene, the solicitor involved with Northern Rock shareholder cases, to find out if they have grounds to prosecute.

The OFT has accused 112 individual building companies of bid-rigging, and 37 have already admitted having some part in the scandal, reports the Times.

The individual authorities would have to present a case to show that they lost out financially due to illegal activity.

Any action is likely to be aimed at specific building companies, with the big–players being the likeliest of targets, claims the Times.