18 firms with public sector tenders under probe for bid-rigging


EIGHTEEN enterprises are under investigation over alleged bid-rigging involving 30 public sector tenders worth RM108.3mil, says Datuk Armizan Mohd Ali (pic).

The Domestic Trade and Cost of Living Minister said the tenders covered food supplies for schools and public universities, as well as cleaning services.

“The cases involve alleged ­collusion among several enterprises in 30 tenders for food supplies, including to schools and public universities, as well as cleaning services.

“The tenders were issued by 12 public sector entities comprising six ministries, three public universities, two state Islamic religious departments and one federal statutory body.

“Among the evidence obtained by Malaysia Competition Commission (MyCC) were the centralised coordination and preparation of tender documents, the exchange of information, including proposed bid prices, and the sharing of financial and human resources among the enterprises involved,” he said during the ministry’s winding-up session in the Dewan Rakyat yesterday.

He said the enterprises had been allowed to submit representations before MyCC issued its final decision.

Armizan also said MyCC had taken enforcement action against 58 companies over alleged bid-rigging, with penalties totalling RM98.49mil at the proposed and final decision stages.

The commission was also investigating 510 companies suspected of similar activities involving tenders worth over RM3bil across the public and private sectors.

“This is part of the government’s procurement policy of prioritising open tendering, enforcement against cartel practices involving bid-rigging under the Competition Act,” he said.

In another development, Armizan said the proposed Lemon Law, which would grant car buyers specific remedies, had reached the policy stage, with the initial proposal covering only new vehicles.

However, the proposal was revised following suggestions to extend the law to used vehicles.

“The draft is currently being circulated to ministries for review, and I hope to present it at the Cabinet meeting in November,” he said.

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