KDB fines National Development Office Ft 5 mln
Monday, March 6, 2006, 15:55
The Public Procurement Arbitration Board (KDB) has fined the National Development Office Ft 5 million after establishing that the winner in a Ft 760 million tender to publish information about Hungary's achievements using EU structural funds had submitted an invalid bid. Although the board found the bid to be invalid, it may not force the office to break its contract with the company, which it signed on December 9, 2005.
The National Development Office called the tender in July 2005. After a pre-qualification round, the office invited four companies to make offers and declared Mindshare Kft the winner. PanMedia Western Kft, which was among the four bidders in the final round, appealed the decision three days after the announcement. Mindshare is owned by Ogilvy and Mather and Partners Holding, while PanMedia is owned by Lowe GGK Holding (Vienna) and a Hungarian private investor.