KUALA LUMPUR: The Malaysia Competition Commission (MyCC) has imposed fines totaling RM446,092.95 on seven companies for their involvement in bid-rigging related to a Ministry of Defence (Mindef) tender worth some RM20 million.
MyCC CEO Iskandar Ismail said the companies were found guilty of violating Section 4 of the Competition Act 2010 (Act 712) by forming a bid-rigging cartel for four tenders awarded by the ministry between 2017 and 2020.
The companies involved are Agenda Eksklusif Sdn Bhd (AESB), Star Apax Enterprise (SAE), Nekad Waja Resources (NWR), Spectron Sdn Bhd (SSB), Teknokrat Makmur Enterprise (TME), Prospectrum Sdn Bhd (PSB), and NK Panorama Enterprise (NKPE).
"Following complaints, MyCC conducted dawn raids, collected statements, requested information, and thoroughly analysed the evidence," he said during a press conference today.
A Proposed Decision was issued on Dec 19, giving the companies a chance to present their representations.
Iskandar revealed that there were two cartels involved: the first group comprised AESB, SAE, NWR, TME, and SSB, while the second group, including NKPE and PSB, participated in only one of the four tenders.
AESB played a leading role in the first group, setting base prices for tenders, while SAE and NWR submitted higher bids.
SSB and TME followed the same approach, with SSB subcontracting a tender to AESB for 5 per cent of its value after winning the bid.
Iskandar said that the companies must pay the penalties within 30 days but may appeal the decision through the Appeal Tribunal.
He also said that the companies could be blacklisted according to Treasury circulars, preventing them from participating in future government tenders for a set period.
"We will pursue legal action if they fail to pay, and the court can issue an enforcement order.
Non-payment could lead to imprisonment for contempt of court," he added.