PETALING JAYA: The Malaysia Competition Commission (MyCC) has slapped eight companies with fines totalling close to RM93 million for engaging in bid-rigging practices.
MyCC said it imposed the fines on the firms yesterday for violating Section 4 of the Competition Act 2010, in relation to two tenders issued by the public works department for the Central Spine Road (CSR) project.
The 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.
The commission said it launched an official investigation following a complaint regarding bid-rigging in tenders relating to Sections 3B, 3C, and 3J of Package 3 of the project.
“During the investigation, MyCC discovered that the same companies were also involved in bid-rigging for tenders for the Sungai Buloh flood mitigation project in Selangor (issued by the department of irrigation and drainage),” it said in a statement.
Following this, MyCC said, it conducted raids, collected evidence, and carried out an in-depth analysis of the case.
The commission had proposed that the eight contractors be fined in April last year and subsequently received the companies’ representations.
After reviewing the representations, MyCC issued the fines, totalling RM92,876,078, against the eight companies yesterday.
MyCC said its investigation revealed that Mangkubumi Sdn Bhd played a key role in orchestrating the cartel, with operations coordinated through Pintas Utama Sdn Bhd.
“Evidence obtained during MyCC’s raids showed that most key documents were found at Pintas Utama’s premises,” it said.
It said the companies engaged in bid-rigging by exchanging information via emails, holding meetings, and preparing tender documents at Pintas Utama’s premises.
“Additionally, MyCC found that after winning the tender for Sections 3B and 3C of the CSR project, IDX Multi Resources Sdn Bhd subcontracted the project to Mangkubumi Sdn Bhd.
“Similarly, Menang Idaman Sdn Bhd, which won the tender for Section 3J of the project also subcontracted it to Mangkubumi Sdn Bhd, which in turn subcontracted both projects to a company known as YCH Sdn Bhd,” it said.
For the Sungai Buloh flood mitigation project tender, IDX Multi Resources Sdn Bhd was awarded the contract, but it subcontracted the project to YCH Sdn Bhd.
