What is bid rigging and why is it criminal?

This sounds like bid rigging, a form of cartel conduct that is prohibited by the Commerce Act 1986. Since 2021, entering into or giving effect to a cartel provision, which includes price fixing, restricting output, allocating markets and bid rigging, can be a criminal offence, punishable by imprisonment for up to seven years for individuals and substantial fines for companies. Arrangements where competitors agree who will win, submit cover bids or coordinate prices harm public procurement and taxpayers. If you are approached, do not participate, and get legal advice about your position. The Commerce Commission operates a cartel leniency policy that may allow the first party to report and cooperate to receive immunity or reduced penalties. Keep records of what you have observed, and consider reporting.