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Public Procurement Arbitration Committee fines MÁV HUF 45m

Hungary's Public Procurement Arbitration Committee (KDB) has fined Hungarian state-owned railway company MÁV HUF 45 million (€171,138) for unlawful extension of the contract for its vehicle fleet, the Public Procurement Council announced on its website on Wednesday.

KDB said that MÁV violated public-procurement regulations when the company unilaterally extended LeasePlan Hungária's contract, which expired on April 1, 2009, to provide and maintain MÁV's fleet of passenger vehicles and light trucks.

MÁV originally awarded LeasePlan Hungária a contract to furnish and maintain 1,161 vehicles, plus or minus 30%, for the company through a public-procurement procedure in April 2005. (MTI-ECONEWS)