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Fri, 29 Nov, 2013 01:41:09 AM Artificially exaggerating price of asphalt works to compensate Lawyer estimates interest money will be double of compensation amount FTimes-STT Report, November 29  File picture of construction company Lemminkäinen office. Photo - Lehtikuva. A court on Thursday ordered eight road construction companies to pay over €37m – the highest ever compensation claim in the country’s history – to a number of municipalities for artificially exaggerating the price of asphalt work.
The Helsinki District Court asked Lemminkäinen and seven other companies to pay the money to forty municipalities and some other state organisations as the allegations of being involved in a cartel and exaggerating the price of asphalt work were proved beyond doubt.
The total amount of the compensation, however, would be much higher after interest calculation. The law firm representing Espoo City said interest rates were likely to double the amount of compensation.
Lemminkäinen authority held a press conference. Photo - Lehtikuva. The court observed that the municipalities overpaid the companies by 15-20%.
It, however, rejected the state’s claim of €57m compensation labelling the amount “illogical.” According to the ruling, the government did not incur any loss as it had approved the and benefitted from the operations of the companies.
The state and the forty municipalities earlier demanded €120m in compensation from Lemminkäinen and the seven other companies.
The Supreme Administrative Court had in the past ruled that companies had conspired on asphalt work prices between 1994-2002.
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Finland Times
| Tuesday, 15 October, 2024 |
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