Chile: Collusion suspected among school meal providers

The companies Hendaya, Alicopsa and Dipralsa – along with two others- were identified by Chilean authorities as part of a holding company controlling 26% of all Student meals in schools, with over $206,374,000 USD in revenues for a market totalling around $766 million. Jorge Bermúdez, the General Comptroller, has recognized that there is a high degree of concentration among the companies bidding for the school meals program.

Manuel Monsalve, presiding the Senate investigation commission, has said that there is enough background evidence to suspect an ongoing collusion agreement in the sector. The congressman added that the case could include conspiracy and fraud charges. However, Mr. Monsalve also recognized that the responsibility for these shortcomings should lie with the state which has failed to provide the JUNAEB, the government agency which manages the School meals program and others directed at Chile’s youth, with the necessary tools to monitor such situations.

Commenting on the announcement, the JUNAEB’s national director Marcelo Araya has said that “we proceeded to gather the background needed to bring before the National Economic Prosecutors (FNE)”, adding too that these documents will be made widely available to all relevant authorities.

Full Content: Bio Bio Chile

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