Eight IT firms busted for bid rigging in gov't contracts
Eight local IT companies are facing fines totalling nearly RM2 million after the Competition Commission (MyCC), in a provisional decision, discovered rigging in their bids for government contracts.
MyCC CEO Iskandar Ismail said today that the companies had formed cartels among themselves when submitting quotations and tender documents for four separate National Academy of Arts Culture and Heritage (Aswara) IT projects...
Eight local IT companies are facing fines totalling nearly RM2 million after the Competition Commission (MyCC), in a provisional decision, discovered rigging in their bids for government contracts.
MyCC CEO Iskandar Ismail said today that the companies had formed cartels among themselves when submitting quotations and tender documents for four separate National Academy of Arts Culture and Heritage (Aswara) IT projects.
Iskandar said MyCC began probing the companies after receiving a complaint from Aswara, which became suspicious over certain anomalies in the procurement process involving three quotations and a tender.
"The bid rigging happened about two to three years ago.
"The MyCC probe found that the eight enterprises had colluded by sharing their quotations and tender proposal information with each other, manipulating prices and preparing documents for one another.
"The winner of the projects also shared their profits with the other bidders (of the cartel)," he said during a press conference at the MyCC headquarters in Kuala Lumpur.
By doing this, Iskandar (photo) said, the companies had committed 'cover bidding', which is an infringement of Section 4 of the Competition Act 2010.
The companies involved are Tuah Packet Sdn Bhd, Caliber Interconnects Sdn Bhd, Aliran Digital Sdn Bhd, Viamed Sdn Bhd, Novatis Resources Sdn Bhd, Silver Tech Synergy Sdn Bhd, Basenet Technology Sdn Bhd, and Venture Nucleus (M) Sdn Bhd.
According to Iskandar, the companies are now facing a total of RM1.93 million in fines for the offences – more than the total project cost of RM1.92 million.
Iskandar said the high penalty – which is still to be finalised pending the companies' return submissions in the case – would hopefully serve as a lesson to others that they would lose more than they could gain by flouting the anti-cartel law.
MyCC, he added, will also submit their final decision on the case to all relevant ministries for future reference when opening project opportunities.
The commission also welcomed other government agencies who previously used the services of the aforementioned IT companies to contact MyCC should they suspect any possible anti-competition activities.
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