"The Railways buys from pre-approved vendors. After getting approved, the vendors take advantage and form cartels and quote exorbitant prices. They dictate prices and this problem is known to all. But due to kickbacks involved or perhaps more due to normal bureaucratic apathy, nothing fruitful is done," said Atul Kumar, IRSS Officer.
Cartels are not peculiar to Railways. It's a universal phenomenon. However, what is peculiar is the organization itself first breeds the cartels and then the cartels bleed the organization.
Please explain to me what "breeds" and "bleed" mean here. Though I know "cartel" means "a group formed for a specific purpose"