KUALA LUMPUR: The Malaysia Competition Commission (MyCC) has identified seven companies allegedly involved in fraudulent bidding practices over services and supplies worth RM20.8 million for the Defence Ministry (Mindef).
All companies, which were supposed to be rival bidders, were alleged to have conspired to manipulate the bidding process, which led to a rise in costs for public service projects, thus denying the entry of new players in the market.
This led the government to incur losses due to rising costs, and led to a waste of public funds.
MyCC Chief Executive Officer, Iskandar Ismail, in a statement today, said the seven companies had allegedly shared information, prepared a joint tender and offered sub-contract agreements as rewards.
He said Agenda Eksklusif Sdn Bhd, Nekad Waja Resources and Star Apax Enterprise were involved in four Mindef tenders, each involving two tenders in 2016 and the rest in 2020.
Prospectrum Sdn Bhd was involved in a ministry tender in 2016, Spectron Sdn Bhd was involved in two tenders in 2020 while one tender each in 2016 involved Teknokrat Makmur Enterprise and NK Panorama Enterprise.
"MyCC's findings via the Proposed Decision were based on preliminary investigations, and as such it cannot be assumed that any of the companies had breached the Competition Act 2010 at this stage.
"These seven companies have an opportunity to submit their written representation within 30 days from the date the Proposed Decision was conveyed to them.
"They can also choose to table their representation verbally at a determined date, after MyCC receives their written representation," he said.
Iskandar said MyCC, after hearing and weighing the representation as well as the evidence gathered during the investigation, will issue a final decision on whether there was any breach of the Competition Act 2010 or otherwise.
Iskandar said the agency is fully committed towards stamping out cartels involved in fraudulent bidding processes.
"MyCC will continue to focus on investigations involving such cartels and will continue to issue more decisions in the future.
"MyCC will tirelessly work towards uncovering and smashing more such cartels," he said.
He said an in-depth study and analysis by MyCC had led to more than 500 companies being investigated for tender processes worth more than RM2 billion.
