Safeguarding Public Tenders: Training the Cyprus Audit Service

Public procurement is the backbone of public expenditure, ensuring that vital infrastructure, services, and policies are delivered effectively. However, its success relies entirely on a single factor: genuine market competition. When competitors collude, the public interest suffers.

To address these high-stakes risks, Trojan Economics delivered a specialised, intensive training seminar to the Audit Service of the Republic of Cyprus on June 24, 2026. Titled “Bid Rigging under Competition Law,” the session provided public auditors with the precise economic and legal tools required to identify, disrupt, and prevent collusive practices in public tenders.

Driving Strategy and Safeguarding Public Resources

The seminar was led by Dr. Panayiotis Agisilaou, Founder and Managing Director of Trojan Economics. It bridged the gap between rigorous economic theory and practical, real-world enforcement.

“Bid rigging is not just a legal violation; it is a direct tax on public resources. When independent operators coordinate rather than compete, it drives up costs, erodes quality, and damages public trust. Our goal is to equip oversight bodies with the analytical toolkit to spot these anomalies early.”

— Dr. Panayiotis Agisilaou

Key Pillars of the Masterclass

The 4-hour intensive session was structured around three core pillars designed to elevate the Audit Service’s investigative capabilities:

1. The Anatomy & Economic Logic of Cartels

Participants explored the legal frameworks governing anti-competitive agreements, specifically Article 101 TFEU and Article 3 of Law 13(I)/2022. The discussion unpacked the internal mechanics of cartels, analysing:

• What incentivises competitors to coordinate?
• The market conditions that make collusion easier to sustain.
• How cartel members monitor each other to prevent cheating.

2. Spotting the “Red Flags” (Detection)

The seminar demystified both the most common and the most sophisticated forms of bid rigging. Attendees learned how to identify hidden patterns across various collusive strategies, including:

• Cover Bidding & Bid Suppression: Submitting token, non-competitive bids to mask a pre-determined winner.
• Bid Rotation & Market Allocation: Systematically trading off winning bids or dividing geographic territories.
• Subcontracting Schemes: Using post-tender subcontracts to financially compensate “losing” cartel members.

3. Proactive Prevention & Tender Design

Detection is vital, but prevention is the ultimate defence. Dr Agisilaou emphasised how smart public procurement design can neutralise collusion risks before a tender is even published. Key focus areas included:

• Strategic use of lots and fine-tuning participation criteria.
• Tight control over information disclosure to prevent market signalling.
• Mandating declarations of independent bid preparation.
• Leveraging data analytics for historical tender data screening and risk scoring.

Hands-On Analysis: From Theory to Evidence

A standout element of the seminar was a hands-on practical exercise built around a hypothetical public tender scenario.

Auditors worked through the nuances of an investigation, learning a critical skill: distinguishing between isolated, innocent market anomalies and systemic, actionable evidence that can support a formal finding of infringement.

Seminar At A Glance

Building a Culture of Competitive Compliance

Through these targeted training initiatives, Trojan Economics remains dedicated to supporting public authorities, corporate entities, and legal professionals. We don’t just explain the rulebook—we provide organisations with the analytical foresight to recognise how competition risks manifest in real market settings and how to neutralise them effectively.

Is your organisation equipped to detect and mitigate competition risks? Contact Trojan Economics today to learn more about our bespoke corporate training and advisory services.