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KUALA LUMPUR: The Malaysia Competition Commission (MyCC) has issued a fine of RM92,876,078 against eight companies for engaging in a bid-rigging cartel involving government tenders.
MyCC chief executive officer Iskandar Ismail (pic) said investigations revealed that the companies had violated Section 4 of the Competition Act 2010 (Act 712) by manipulating three government tenders worth approximately RM474mil, under the Public Works Department (JKR) and the Department of Irrigation and Drainage (DID) in 2019.
The affected tenders include two packages under the Central Spine Road project - Pakej 3: Gua Musang Kelantan to Kg Relong, Kuala Lipis Pahang (Seksyen 3B and 3C KM 180.5 FT08 to Bulatan Gua Musang) and Pakej 3: Gua Musang Kelantan to Kg Relong, Kuala Lipis Pahang (Seksyen 3J Kampung Seberang Jelai to Kg Relong) - as well as the Rancangan Tebatan Banjir (RTB) Sungai Buloh, Selangor flood mitigation project.
“The eight companies involved are Dutamesra Bina Sdn Bhd, IDX Multi Resources Sdn Bhd, Mangkubumi Sdn Bhd, Menang Idaman Sdn Bhd, Meranti Budiman Sdn Bhd, Pintas Utama Sdn Bhd, NYL Corporation Sdn Bhd and Kiara Kilat Sdn Bhd.
“Following an extensive investigation, MyCC has imposed a total financial penalty of RM92,876,078.90 on the infringing enterprises,” he said during a press conference here on Friday (Feb 28).
Under the Competition Act, Iskandar said MyCC has the authority to impose fines of up to 10% of a company’s worldwide turnover.
“In determining the penalties, MyCC considered both aggravating and mitigating factors. The companies now have 30 days to pay their respective fines. They can either admit liability and make payment or appeal the decision at the Competition Appeal Tribunal,” he added.
According to Iskandar, MyCC launched a formal investigation following complaints of alleged bid rigging in the first two tenders, and during its probe, the commission uncovered that the same companies were also colluding in the RTB: Sungai Buloh project.
The investigation revealed that the cartel’s operations were masterminded by Mangkubumi, with Pintas Utama serving as the central hub for coordination.
“Evidence seized during MyCC’s dawn raids was largely found at Pintas Utama’s premises.
“The cartel orchestrated its bid-rigging scheme through information sharing via emails, meetings and the preparation of tender documents, which were largely handled at Pintas Utama’s office.
“Once tenders were awarded, IDX Multi Resources and Menang Idaman subcontracted their respective projects to Mangkubumi, which in turn subcontracted the projects to another enterprise, YCH,” he said.
Meanwhile, for the RTB: Sungai Buloh project, Iskandar said IDX Multi Resources directly subcontracted the project to YCH.
“Bid rigging distorts the procurement process, leading to inflated costs that ultimately burden both the rakyat and government.
“This is why, in addition to today’s decision, we are currently investigating 13 bid-rigging cartels involving 561 enterprises across tenders worth RM2.37bil.
