KUALA LUMPUR (Sept 5): The Malaysia Competition Commission (MyCC) on Thursday said it is penalising seven privately-held companies for alleged involvement in a cartel to bid for four defence tenders worth RM20 million.
The combined fine was RM446,092.95 against the seven firms — Agenda Eksklusif Sdn Bhd, Star Apex Enterprise, Nekad Waja Resources, Spectron Sdn Bhd, Teknokrat Makmur Enterprise, Prospectrum Sdn Bhd, and NK Panorama Enterprise — according to a statement from MyCC.
“Bid-rigging cartels have long threatened the integrity of public procurement, draining valuable public resources meant for the benefit of the nation and rakyat,” said Iskandar Ismail, the agency’s chief executive officer. “MyCC stands resolute in its mission to eliminate these unethical practices.”
The fines for infringing Section 4 of the Competition Act 2010 come following a proposed decision issued in December 2023. Agenda Eksklusif was slapped with the highest penalty at RM272,129.52, followed by Star Apex at RM109,701.11.
Spectron, Prospectrum and Teknokrat Makmur were fined between RM3,379.90 and RM43,889.92. Nekad Waja and NK Panorama were each fined RM1,000 and required to deposit a bond of good behaviour worth RM5,000 with the commission for three years.
All seven companies have also been instructed to enroll in a competition compliance programme approved by MyCC.
Investigation reveals bid-rigging
Investigation revealed that two cartel groups were involved in bid-rigging, Iskandar said at a press conference on Thursday.
The first group comprising Agenda Eksklusif, Star Apex, Nekad Waja, Spectron and Teknokrat Makmur operated by having Agenda Eksklusif set the base price, while the others submitted higher bids.
"Once Spectron was awarded one of the tenders, it immediately subcontracted the project to Agenda Eksklusif in exchange for 5% of the tender value," Iskandar noted.
The second cartel group, involving Prospectrum and NK Panorama, used the similar modus operandi in one tender, he said.
Most of the evidence for the first cartel group was found at Agenda Eksklusif’s premises, while evidence for the second group was seized from Prospectrum’s premises, both located in Manjung, Perak.
Iskandar emphasised that MyCC's investigation focused on the companies involved, not the Ministry of Defence (Mindef), which was manipulated by the cartels.
More cases under probe
MyCC is currently investigating 13 suspected bid-rigging cartels involving 561 enterprises in tenders worth RM2.37 billion, and is assessing complaints concerning 463 enterprises in tenders worth RM9.27 billion.
Iskandar urged other agencies to follow Mindef’s lead and cooperate with MyCC to address suspected bid-rigging in their tender processes.
“If any ministries or agencies suspect bid-rigging within their tendering processes, we encourage them to step forward and collaborate with MyCC,” he added.