A US electrical contractor rigged bids on a US government programme designed to help schools and libraries in poor areas connect to the Internet.

Howe Electric has admitted the charges and agreed to pay $3.3 million in fines and restitution.

The US Department of Justice said the company engaged in two scams to rig bids to two Fresno-area schools. The schools were given government cash to receive money for cabling, Internet backbone equipment and monthly Internet and telephone service fees.

Howe Electric did a deal with competitors not to compete on the bids, in return for its agreement to use those competitors as subcontractors on the school projects.

Howe Electric will pay $300,000 in criminal fines and $3 million in restitution and civil settlements. X

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