Recruitment firm Hays is considering appealing against a £30m fine imposed by the Office of Fair Trading after its Hays Construction and Property arm was found guilty of colluding with rivals to fix prices

The OFT said Atkins and Taylor Woodrow, a subsidiary of Vinci, were affected by the cartel’s activities.

The news came as the industry continued to react to the OFT’s inquiry in tender malpractice and a further scandal engulfed contractor Mabey & Johnson (see below).

Reporting its latest findings, the OFT said a cartel of recruiters had been fined £39m after forming a group called the Construction Recruitment Forum to fix their target fee rates.

The six also agreed to boycott another firm, Parc UK, which acted as an intermediary between clients and recruiters and stood to undercut the six firms’ rates.

A spokesperson for the OFT called the forum a “textbook cartel”.

In a statement, Hays, which last year made net fees of £670.8m, said it took the findings “seriously”, but that the fine was “wholly disproportionate with the activities to which it relates”. Hays added that the OFT’s investigation related to an isolated matter “arising from the conduct of a single employee who is no longer with the company”.

Other firms fined were A Warwick Associates, CDI AndersElite, Eden Brown, Fusion People and Henry Recruitment.

Two other companies were involved: Beresford Blake Thomas and Hill McGlynn & Associates. They were granted immunity after providing the OFT with evidence of the cartel.

First foreign corruption fine

Bridge contractor Mabey & Johnson has been convicted of overseas corruption and breaching UN sanctions, in a landmark case brought by the Serious Fraud Office.

The company was fined £3.5m, and forced to pay £1.1m in a confiscation order, after it pleaded guilty to trying to influence officials in Jamaica and Ghana when bidding for public contracts.

It marked the first corruption prosecution in the UK against a British firm working overseas.