The Malaysia Competition Commission (MyCC) has imposed RM446,092.95 in penalties on seven private firms for their alleged involvement in a bid-rigging cartel.
It has issued an Infringement Decision against these companies for violating section 4 of the Competition Act 2010 by manipulating bids for four tenders awarded by the Defence Ministry (Mindef) worth RM20 million between 2017 and 2020.
The companies penalised include Agenda Eksklusif Sdn Bhd, which was fined RM272,129.52 for its involvement in all four tenders, Star Apex Enterprise (RM109,701.11 for all four tenders), Spectron Sdn Bhd (RM43,889.92 for participating in two tenders), Prospectrum Sdn Bhd (RM14,992.50 for one tender), and Teknokrat Makmur Enterprise (RM3,379.90 for one tender).MyCC chief executive officer Iskandar Ismail said the fines and penalty will include requiring the five companies to enrol in a competition compliance programme and undergo training approved by the commission.
In addition, Nekad Waja Resources and NK Panorama Enterprise were fined RM1,000 each for their involvement in all four tenders and one tender, respectively.
“These two companies are also required to deposit a bond of good behaviour, amounting to RM5,000, with MyCC for three years and to participate in a competition compliance programme,” Iskandar said at a press conference today.
He also noted that MyCC’s investigation revealed two cartel groups.
The first group includes Agenda Eksklusif, Star Apex Enterprise, Nekad Waja Resources, Teknokrat Makmur Enterprise, and Spectron Sdn Bhd, which manipulated bids across multiple tenders.The second group, NK Panorama Enterprise and Prospectrum Sdn Bhd, was involved in one of the four tenders.
Iskandar added that Agenda Eksklusif played a central role in all four tenders by setting the base price, while Star Apex Enterprise and Nekad Waja Resources submitted higher bids to ensure Agenda Eksklusif’s success.
“Most of the evidence, including tender documents for the first cartel group, was found at Agenda Eksklusif’s premises in Majung, Perak.
“For the second cartel group, MyCC seized all relevant documentary evidence from Prospectrum Sdn Bhd’s premises, also in Manjung,” he said.
MyCC is similarly investigating 13 additional bid-rigging cartels, involving 561 enterprises in tenders worth RM2.37 billion and the commission has also received complaints involving 463 enterprises in tenders worth RM9.37 billion.
“I want to emphasise that our investigation targeted the enterprises involved in this infringement, not Mindef. The ministry was manipulated by these groups.
“We commend Mindef for their cooperation in this investigation and for standing with us against these intolerable activities, which we deem a grave violation of the competition law,” Iskandar said
