Swift Networks Group has told the market that it is cooperating with the Australian Competition and Consumer Commission regarding an investigation into an alleged tendering cartel.
Swift Networks Group has told the market that it is cooperating with the Australian Competition and Consumer Commission regarding an investigation into an alleged tendering cartel.
ASIC last week launched federal court proceedings against Swift Networks Pty Ltd, a subsidiary of ASX-listed Swift Networks Group, for alleged bid rigging and price fixing when tendering to Western Australian mine sites in 2019.
Addressing the action this morning, Swift said it had cooperated with the ACCC in its investigations and had engaged Clayton Utz to assist with the matter.
Swift also confirmed it had a reseller agreement with NYSE-listed group DXC Technology in 2019.
"Swift takes competition law seriously and had in place, at the time, policies and codes of conduct which applied to all employees," the company said in a statement.
“Swift’s top priority is to ensure our culture drives the highest levels of integrity and not be led by the behaviours of others."
The company also claimed the ACCC had alleged that it was two former Swift Networks employees engaged in the alleged conduct.
"The ACCC does not allege any involvement by SN's senior management," its statement read.
Swift said the matter was before the Federal Court and therefore no further comment was possible.
The commission is claiming Swift made agreements on five occasions with competitor DXC Connect Pty Ltd and DXC Technology Australia Pty Ltd – collectively known as DXC – to rig bids and fix prices.
DXC Technology is a global IT business formed in April 2017 by the merger of Computer Sciences Corporation (CSC) and the Enterprise Services business of Hewlett Packard.
The company has nearly 150,000 staff and 6,000 clients in more than 70 countries, and trades on the New York Stock Exchange.
West Perth-based Swift Networks’ primary business is supplying its low-bandwidth entertainment and communications system to closed-loop accommodation facilities.
According to the ACCC, the tenders were for projects at Rio’s Guadi-Darri West Angelas and Yandicoogina, Western Turner Syncline and Peninsula Palms sites, and at Fortescue’s Japal Village Iron Bridge site.
The watchdog is claiming Swift and DXC agreed that one of them would submit a higher price then the other in response to a request for bids.
According to the ACCC, a cartel exists when businesses agree to act together instead of competing with each other.
Swift shares were down 25 per cent at 0.9 cents.
