Commerce Commission targets bid-rigging in public procurement
Sunday 27 September 2026 · 2 outlets · 2 reports · updated In this story Commerce Commission, John Small
The Commerce Commission estimates that illegal bid-rigging in public procurement costs New Zealand taxpayers approximately $360 million annually. Chairperson Dr John Small stated that investigations are currently ongoing as the commission targets businesses involved in such collusion.
Key facts
3 facts
- Estimated annual cost of bid-rigging in public procurement is $360 million to $650 million
- Government annual spend on goods and services procurement is approximately $51.5 billion
- Anonymous reports to the commission rose by about 30% annually over the last two years
The full story
1 min read · 2 outlets
The Commerce Commission has identified that illegal bid-rigging in public procurement costs New Zealand taxpayers an estimated $360 million annually. Chairperson Dr John Small stated this figure is conservative and could potentially reach $650 million. This estimate is based on the assumption that rigged contracts cost roughly 20% more and that approximately 3.5% of contracts are affected.
Public procurement is now a specific enforcement priority for the commission. Dr Small warned those involved in such activities, stating, "we're coming for you". The commission defines bid-rigging as an agreement between bidders regarding who should win a specific bid.
The agency is using an anonymous reporting tool and a leniency programme to uncover secretive cartel conduct. Anonymous reports have increased by approximately 30% each year over the last two years, with 34 reports received in the past 12 months. Under the leniency programme, the first party to report a cartel can avoid criminal prosecution and civil proceedings.
Beyond public procurement, the commission is addressing cartel conduct in the real estate and grocery sectors. In the construction industry, the commission previously completed a criminal prosecution against MaxBuild in December 2024.
Where reports differ
- One report provides a single estimate of $360 million for the cost of bid-rigging, while another provides a range between $360 million and $650 million
Compiled from reports by RNZ and 1News.