A. M. The Superintendencia de Competencia (SC) has imposed significant sanctions on two private security companies, SIEDES and MUINSA, following an ex officio investigation that revealed an agreement to fix prices in public bidding processes. This anticompetitive practice, which manipulates the auction process and harms the State, is strictly prohibited by salvadoran law.
The fines imposed on the offending companies total US$292,000, equivalent to US$146,000 for each company. This sum, which represents 10% of their profits from the last fiscal period, is intended to be a severe punishment that will deter future unfair practices while allowing the companies to maintain their operations.
In addition to the economic sanctions, the SC has ordered the companies to immediately cease their anticompetitive agreement. The objective of this measure is to restore competitive conditions in the market and protect public funds, which come from citizens’ taxes and must be used for quality works and services.
This type of collusion in the security sector is particularly damaging. Between 2020 and 2023, contracts with these companies totaled nearly US$3 million, underscoring the importance of this market. Price manipulation not only distorts competition but also limits government options and jeopardizes the efficiency of resource management.
With actions like this, the Government of El Salvador, through the SC, seeks to protect the economy and the well-being of its citizens. Active market surveillance is essential to ensure that every dollar invested in public procurement is used for the country’s development and not diverted by private interests.
