MyCC Imposes Over RM92 Mln In Penalties On Eight Enterprises For Bid-Rigging

KUALA LUMPUR, Feb 28 (Bernama) -- The Malaysia Competition Commission (MyCC) has imposed a penalty of RM92,876,078.90 on eight enterprises for engaging in bid-rigging cartel activities involving two tenders from the Public Works Department (JKR) and one tender from the Department of Irrigation and Drainage (DID).

In a statement today, MyCC chief executive officer Iskandar Ismail said the penalties were imposed following the commission’s decision yesterday, which found that all eight enterprises had violated Section 4 of the Competition Act 2010 (Act 712).

Iskandar specified that the JKR tenders linked to the cartel involved the Central Spine Road (CSR) projects: Package 3—Gua Musang, Kelantan, to Kampung Relong, Kuala Lipis, Pahang, covering Section 3B and 3C (KM 180.5 FT08 to Bulatan Gua Musang) and Section 3J (Kampung Seberang Jelai to Kampung Relong).

The DID tender in question was the Sungai Buloh Flood Mitigation Plan (RTB: Sungai Buloh). The tenders had an estimated value of RM474 million in 2019.

"MyCC initiated a formal investigation following a complaint regarding bid-rigging in the CSR: 3B & 3C and CSR: 3J tenders. During the investigation into these tenders, MyCC discovered that the same enterprises were also involved in bid-rigging for the RTB: Sungai Buloh tender.

"We conducted raids, gathered information, and carried out an in-depth analysis of the relevant evidence," he stated.

He said the investigation revealed that the cartel’s operations were orchestrated by Mangkubumi Sdn Bhd, with its activities centrally coordinated at Pintas Utama Sdn Bhd.

He further noted that nearly all key evidence was discovered at Pintas Utama’s premises.

Iskandar said the bidding strategy involved information sharing through emails, meetings, and the physical preparation of tender documents at Pintas Utama’s premises, a modus operandi employed by the cartel across all three projects.

MyCC also found that after IDX Multi Resources Sdn Bhd was awarded the CSR: 3B & 3C tender and Menang Idaman Sdn Bhd was awarded the CSR: 3J tender, both enterprises subcontracted their respective projects to Mangkubumi.

Under this arrangement, Mangkubumi effectively acted as the main contractor on behalf of IDX Multi Resources and Menang Idaman, which in turn subcontracted the projects to another enterprise, YCH Sdn Bhd.

"However, in the case of the RTB: Sungai Buloh tender, MyCC found that IDX Multi Resources directly subcontracted the project to YCH, after securing the tender," he added.

Iskandar also disclosed that MyCC is actively investigating 13 additional bid-rigging cartels involving 561 enterprises linked to tenders worth RM2.37 billion.

Simultaneously, it is reviewing complaints involving 463 enterprises in tenders valued at RM9.27 billion.

--BERNAMA