Budapest public maintenance company FKF was fined HUF 1 million by the public procurement committee KDB for unlawfully canceling an open tender.

FKF had invited bids for a contract worth about HUF 555 million to supply road salt for clearing roadways. But FKF abruptly canceled the bidding process after four bids were filed with Optopus Kft submitting the lowest offer. However, a day later FKF launched another tender, this time a negotiated procedure, and announced Medcare Gyógyszer és Gyógyászati Kereskedelmi Kft winner two days later.

The KDB said FKF’s public procurement procedure was in breach of regulations which require public companies to notify the KDB when arranging a negotiated procurement procedure.