KUALA LUMPUR: Eight enterprises have been issued an infringement decision and fined a combined total of about RM93mil for engaging in a bid-rigging cartel involving three government projects worth about RM474mil, says the Malaysia Competition Commission (MyCC).
MyCC chief executive officer Iskandar Ismail said the cartel was involved in manipulating the tendering process for the projects under the Public Works Department and the Irrigation and Drainage Department in 2019. The act, he added, violated Section 4 of the Competition Act 2010 (Act 712).
The affected tenders included two packages under the Central Spine Road project as well as the Sungai Buloh flood mitigation project in Selangor.
The eight companies 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 yesterday.
The fines allocated for each company are RM48,635,588.42 for Pintas Utama, Mangkubumi (RM21,860,697.39), Dutamesra Bina (RM6,627,658.75), IDX Multi Resources (RM6,053, 100.33), Meranti Budiman (RM3,528,292.70), Kiara Kilat (RM3,389,392.10), Menang Idaman (RM2,668,261.30) and NYL Corporation (RM113,087.91).
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 said.
He added that MyCC had 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 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, he said. “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,” he said.
In the Sungai Buloh flood mitigation project, Iskandar said IDX Multi Resources had directly subcontracted it to YCH.
“Bid rigging distorts the procurement process, leading to inflated costs that ultimately burden both the rakyat and the government,” he said.
