The competition watchdog has announced an investigation into 鈥渟uspected bid-rigging鈥 in a major government fund to improve the condition of school buildings. The Competition and Markets Authority 鈥渞eason to suspect that several companies providing roofing and construction services 鈥 including building contractors and technical advisors 鈥 illegally colluded to rig bids to secure contracts鈥 through the condition improvement fund (CIF). Around 4,500 academies in small trusts, sixth form colleges and voluntary-aided schools are eligible to bid for CIF cash for smaller maintenance projects, while bigger trusts and local authorities receive direct funding. The government withdrew funding for 鈥渁 number of projects鈥 granted school maintenance cash through the condition fund recently, after identifying 鈥渟erious irregularities鈥 in their applications. The CMA has now carried out 鈥渦nannounced inspections鈥 at 鈥渟everal business premises鈥 to gather evidence. It has 鈥減articular concerns in relation to roofing contracts鈥. Juliette Enser, executive director of competition enforcement at the CMA, said: 鈥淭his fund is incredibly important and ensures that essential building improvements can be made to schools throughout England, meaning students are learning in safe and suitable environments. 鈥淲hile no assumptions should be made that competition law has been broken at this early stage, we will be investigating this issue thoroughly. 鈥淲e will now be making enquiries and assessing the evidence to see whether or not bid rigging has taken place 鈥 and what further action may be needed.鈥 ‘Unannounced inspections’ The new government recently ordered a review of the entire system for issuing maintenance funding, amid concerns the current set-up is 鈥渢oo complicated鈥. The investigation into suspected bid-rigging launched this week with 鈥渦nannounced inspections by the CMA at several business premises鈥. 鈥淭he purpose of the inspections is to gather any relevant evidence, including physical or digital documents, to assist the CMA in its enquiries. The CMA has also worked closely with the DfE throughout its investigation.鈥 If companies are found to have broken competition law, the CMA will issue something called a statement of objections. This will detail the CMA鈥檚 concerns and businesses will have an opportunity to respond. However, the CMA pointed out 鈥渘ot all cases proceed to a statement of objections, and, at this stage, no assumptions should be made that the law has been broken鈥. Public procurement 鈥渞epresents around a third of public expenditure and evidence from around the world suggests it is highly vulnerable to anti-competitive behaviour鈥, the CMA said. The authority said it had issued fines 鈥渢otalling almost 拢60 million to firms involved in rigging both public and private sector bids鈥 last year. A new rule comes into force in February which means any businesses that break competition law could also be banned from bidding on public contracts in the future.