Bidding for Boryeong City Waterworks Repair Project: Public Official Referred for Disciplinary Action

Internal Audit on Cancellation of Electronic Bid Winner for Emergency Water Supply Leak Repair
Two Team Leaders, Responsible Officials, and Family Members of B Company to Face Disciplinary Committee

It has been revealed that public officials in Boryeong, Chungnam, were systematically involved in the bidding process for emergency water supply leak repair contracts.

According to an investigation by Asia Economy on the 14th, the city announced an electronic bidding for emergency water supply leak repair contracts, dividing the area into three zones from the 6th to the 11th of last month. Each zone had an estimated price of 100 million KRW, with a total project budget of 300 million KRW, and the contracts were to be awarded by private contract.

Company A bid approximately 87 million KRW each for zones 1 and 2, being selected as the top candidate for both zones.

However, the city canceled the electronic bidding, citing an administrative error in which the responsible official classified Company B, which had submitted the required documents in advance, as a company that had not submitted documents. The city then changed the process to a manual opening on the 19th, canceling Company A's top candidate status.

There is suspicion that the city, if the manual opening was legitimate, should have notified the top bidder from the electronic bidding before proceeding, but instead sent a text message at 2:34 p.m., only 26 minutes before the 3 p.m. manual opening, possibly to prevent Company A from participating in the manual process.

It was also revealed that, although Company B should have had its objection submitted by its CEO or an authorized employee, a city hall official from the relevant department submitted the objection on their behalf. This company is reportedly operated by the family of the official in question.

This has raised concerns that the responsible officials may have been systematically involved in the bidding process.

In particular, it was found that, instead of submitting a formal written complaint, a city hall official verbally raised the objection regarding the bid on behalf of Company B.

This was confirmed through the city's own audit following Company A's protest. Although Company B did not win the contract even after the manual opening, suspicions have been raised that the process was changed to manual to give Company B an opportunity to participate in the bidding.

There are also suspicions that the city may have attempted to cut off responsibility regarding this matter.

Regarding this bid, the city decided to exclude the head of the relevant department and the director who approved the contract from disciplinary action, and to refer two team leaders, the responsible official, and the official related to Company B's family to the disciplinary committee.

A city official stated, "We are considering disciplinary action for the head of the department, and have decided to refer two team leaders, the responsible official, and the official related to Company B's family to the disciplinary committee."

The official added, "It has been confirmed that the official related to Company B's family raised the objection verbally, and it was inappropriate for the department staff to file an objection on behalf of a company operated by their family."