Fines for the Swedish Armed Forces following improper procurement

The Swedish Armed Forces has been sentenced to pay procurement fines for an illegal direct award of contracts.

In an application to the administrative court, the Swedish Competition Authority has demanded that the Swedish Armed Forces pay SEK 270,000 in procurement fines following an illegal direct award of contracts for certain advertising services. Stockholm Administrative Court has now adopted the line of the Competition Authority and has sentenced the Armed Forces to pay the fines sought. The judgment also demonstrates that verbal agreements can be illegal direct awards of contracts and result in fines.

This judgment is the first imposed by an administrative court after the Swedish Competition Authority on its own initiative pursued applications against public authorities for the imposition of procurement fines. It is now possible for the Competition Authority to present demands requesting an administrative court to impose fines in the event of a breach of the rules. This was achieved in this case.

“I am pleased that the administrative court has taken the line of the Swedish Competition Authority. The procurement rules exist as a guarantee that taxpayers’ money is used in the best and most efficient way possible,” comments Dan Sjöblom, Director-General of the Competition Authority.

“It is good that the new rules and regulations may curb the making of routine contract calls on former suppliers and that such illegal conduct may have repercussions for the authority concerned.”

At the current time there are a further ten or so applications pending for the determination of fines by administrative courts involving improper public procurements.

An appeal against the judgment of the administrative court can be made to the Court of Appeal.

For additional information, please contact:
Jimmy Dominius, Press Officer, tel. +46 (0)8-700 15 80 or +46 (0)76-542 15 80
Magnus Ehn, Legal Counsellor, tel. +46 (0)8-700 16 59