Mexican steel tubing provider General de Tubos y Aceros has accused Mexico state (Edomex) Water commission CAEM of illegally granting deadline extensions in awarding a steel tubing procurement contract for MXN 293 million (EUR 16,7 million) to a bid from rival companies Tubesa and Tumex. Although the proposal of Tumex was MXN 36.5 million (EUR 2,5 million) more expensive than that of General de Tubos y Aceros, which totaled MXN 256 million (EUR 17,9 million), General de Tubos y Aceros' offer was not accepted. It was stated that they did not present the proper documentation, a charge that the company denies.
In addition, General de Tubos legal representative Eduardo Arrambide declared that, following CAEM's third call for bids on August 29, 2006, he received an offer from Tumex president Salomón Dundich for a portion of the contract from this company in return for not presenting a competing offer.

The contract was for the provision of steel tubing for the Edomex potable water distribution circuit, which will distribute water from the Cutzamala system to some 3.5mn residents of Edomex and national capital DF.

Contact: General de Tubos y Aceros, harrambide@gtamex.com.mx, http://www.gtamex.com.mx/; CAEM, dgphprocesamiento@prodigy.net.mx, http://www.edomexico.gob.mx/caem/CAEM.htm

Source: BNamericas.com (subscription site), 7 Feb 2007