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THE Malaysia Competition Commission (MyCC) has levied a significant penalty of RM92,876,080 on eight companies found guilty of engaging in bid rigging activities that involved three major government tenders worth a total of RM474 million.
These tenders were linked to two Public Works Department (PWD) projects for the Central Spine Road (CSR) and one Department of Drainage and Irrigation (DID) project for flood mitigation.
MyCC's Chief Executive Officer Iskandar Ismail revealed in a statement today that the commission's investigation discovered that the eight companies violated Section 4 of the Competition Act 2010 (Act 712) by coordinating their bids for the tenders in 2019.
The companies implicated in the bid-rigging scheme are Dutamesra Bina Sdn Bhd, IDX Multi Resources Sdn Bhd, Mangkubumi Sdn Bhd, Menang Idaman Sdn Bhd, Meranti Budiman Sdn Bhd, and Pintas Utama Sdn Bhd, all of which were involved in all three tenders. Additionally, NYL Corporation Sdn Bhd was involved in both of the PWD tenders, while Kiara Kilat Sdn Bhd was implicated in one of the PWD tenders.
Iskandar detailed the cartel's operations, explaining that the group’s bid-rigging activities were orchestrated by Mangkubumi and coordinated centrally at Pintas Utama's offices. "MyCC’s investigation revealed that nearly all the evidence related to the cartel's operations was found at Pintas Utama’s premises during the raid," he said.
He added the companies had been sharing sensitive information, preparing tender documents, and strategising their bids through meetings and email communications, all predominantly occurring at Pintas Utama’s location.
"The strategy was consistently applied by the cartel group across all three projects," Iskandar added, shedding light on how the cartel systematically manipulated the tender process.
Regarding the specific projects, Iskandar noted that once IDX Multi Resources secured the CSR tender for Package 3, which involved the section of the road from Gua Musang, Kelantan to Kampung Relong, Pahang, and Menang Idaman won Package 3J, covering Kampung Seberang Jelai to Kampung Relong, the two companies subcontracted the work to Mangkubumi. "Mangkubumi acted as the main contractor for both IDX Multi Resources and Menang Idaman, before subcontracting the projects again to YCH Sdn Bhd," he explained.
Similarly, for the flood mitigation project in Selangor, after IDX Multi secured the tender, it subcontracted the project to YCH.
Iskandar said the companies involved in this cartel must pay the imposed penalties within 30 days. However, they have the right to appeal the decision to the Appeal Tribunal. "While the companies have the option to appeal, the penalties stand unless otherwise determined."
The MyCC’s action underscores its commitment to ensuring fair competition in Malaysia’s procurement processes, sending a clear message that bid rigging will not be tolerated in the country’s public sector projects. – February 28, 2025