KUALA LUMPUR – The Malaysian Competition Commission (MyCC) has issued a Proposed Decision on seven enterprises over their involvement in the alleged bid-rigging of four tenders issued by the Defence Ministry, amounting to some RM20.8 million.
This came after the government body discovered that the companies had conspired in their bid submissions for the tenders for the provision of goods and services.
The enterprises are Agenda Eksklusif Sdn Bhd; Nekad Waja Resources; Star Apax Enterprise; Prospectrum Sdn Bhd; Spectron Sdn Bhd; Teknokrat Makmur Enterprise; and NK Panorama Enterprise.
“Through the investigation, it was also revealed that these enterprises had engaged in bid rigging through the exchange of information, facilitation of tender submission, and subcontracting as a kickback,” it said in a statement.
However, MyCC noted that its findings are still provisional, and it cannot be assumed that any of the companies in question had infringed the Competition Act 2010.
It added that the companies involved may submit their written representation within 30 days of the Proposed Decision’s date of notice, and can subsequently submit their written responses within 30 days after receiving the document.
They may also orally present their response, at a date determined by MyCC after receiving the written submissions.
MyCC said as a quasi-judicial body, it will only issue its final decision on whether infringement of the Competition Act is found after listening to and considering the enterprises’ representations.
The agency said bid cartels involving the collusion of competing firms to manipulate the bidding process for public procurements have been an ongoing concern for the government and the public.
“The harmful effects of bid-rigging cartels are far-reaching. They may not only lead to inflated prices for public projects and services, but also hinder innovation and deter new entrants from entering the market.
“It is the citizens who bear the brunt of these increased costs, and it can lead to a waste of public funds,” it said.
As such, MyCC said it would aim to ensure fairness in the market and prevent government fund leakages by exposing and taking legal actions against such cartels.
Meanwhile, MyCC chief executive officer (CEO) Iskandar Ismail thanked the Defence Ministry for cooperating with the agency in its investigations.
He also urged other government agencies at all levels to actively engage with MyCC in its efforts to combat bid rigging in public procurements. – December 19, 2023