"Bid Restrictions on Bribery Companies Justified"...Central Administrative Appeals Commission Dismisses Claims from Five Firms

"Fair Contract Order Takes Precedence Over Management Difficulties"

Companies that were restricted from participating in bids after providing bribes to public institution officials filed administrative appeals, but the decision upheld that the sanctions were justified.

On May 6, the Central Administrative Appeals Commission of the Anti-Corruption and Civil Rights Commission announced that it had dismissed appeals for cancellation of sanctions filed by five companies that were sanctioned as disqualified contractors for providing bribes to an official of Public Institution A.

Government Complex Sejong, Anti-Corruption and Civil Rights Commission. Photo by Hyunmin Kim

The sanctions for disqualified contractors are a system that imposes restrictions, such as limiting participation in public procurement bids, on those who engage in acts such as collusion or bribery. The five companies that filed administrative appeals are service providers conducting marine-related research and information projects. According to the investigation authorities, these companies provided cash and gift certificates worth between 2 million won and up to 17 million won to an official affiliated with Public Institution A. As a result, each company was restricted from participating in public procurement bids for a period ranging from three to six months, depending on the amount of the bribe and the number of individuals involved.

The companies argued that the sanctions should be lifted. Their claims included: the cash and gift certificates they provided were intended for social or customary purposes and unrelated to business solicitations; that company management never instructed employees to provide money or goods; and that the authorities imposed excessive sanctions by aggregating the total amount provided over multiple years without distinguishing by year.

The Central Administrative Appeals Commission concluded that the sanctions were neither unlawful nor unjust, considering: ▲ the facts established in a finalized criminal case are generally recognized as is in administrative appeals unless there are special circumstances; ▲ offering bribes is a serious crime and one of the most socially condemned offenses stipulated as grounds for sanctions in the national contract laws; and ▲ the sanctions strictly followed the standards for the amount of bribes set forth in the enforcement rules of the national contract law.

Chairperson Cho Soyoung of the Central Administrative Appeals Commission stated, "Although each of the sanctioned companies filed for administrative appeal citing management difficulties, we are strictly judging corrupt practices that undermine fair bidding and contract order," and added, "We will continue to take a rigorous approach in administrative appeals related to corruption."

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