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EIGHT CONTRACTORS FACE POSSIBLE FINES FOR BID RIGGING

23 April 2024
News Malaysia

KUALA LUMPUR, 23 APRIL 2024 - The Malaysia Competition Commission (MyCC) an agency under the Ministry of Domestic Trade and Cost of Living (KPDN) had on 16 April 2024 made a Proposed Decision against eight enterprises for infringing section 4 of the Competition Act 2010 (CA 2010) by engaging in the acts of bid rigging in 2019 in respect of two tenders of the Public Works Department (JKR) and one tender of the Department of Drainage and Irrigation (JPS). These three tenders are worth approximately RM473 million in the provision of services for construction works for roads and flood mitigation systems. The Proposed Decision has been duly served on all eight enterprises on 22 April 2024.

Six enterprises, namely, Dutamesra Bina Sdn. Bhd., IDX Multi Resources Sdn. Bhd., Mangkubumi Sdn. Bhd., Menang Idaman Sdn. Bhd., Meranti Budiman Sdn. Bhd. and Pintas Utama Sdn. Bhd. are implicated in all three tenders. One enterprise, NYL Corporation Sdn. Bhd. is implicated in both JKR tenders. Another enterprise, Kiara Kilat Sdn. Bhd. is implicated in one of the two JKR tenders.

The investigation has provisionally found that these enterprises had colluded in bid rigging through information sharing and coordination in the participation of the above-mentioned tenders. It is important to highlight that MyCC’s findings are provisional and it should not be assumed that any enterprise has conclusively infringed the Competition Act 2010 at this stage. As required by the Act, the enterprises concerned have also been notified of the proposed penalties. These enterprises are accorded the opportunity to submit their respective written representations within 30 days after receiving the Proposed Decision. Thereafter, the enterprises have the additional opportunity to make their respective oral representations before the Commission at a later date to be determined. MyCC will only issue its Final Decision after considering representations made by the enterprises as against evidence gathered from the investigation.

Dato’ Seri Mohd Hishamudin Yunus

Chairman

Malaysia Competition Commission