Six companies are facing potential financial penalties after being implicated in an alleged bid-rigging cartel involving a RM5.7 million food supply tender issued by the Agensi Antidadah Kebangsaan (AADK).
The Malaysia Competition Commission, Malaysia Competition Commission, said it has issued a Proposed Decision against the six enterprises following an investigation into suspected anti-competitive conduct linked to the procurement process.
MyCC chairman Idrus Harun said investigations found evidence suggesting that the companies had exchanged information and coordinated their bids when participating in the tender exercise.
According to the commission, the alleged arrangement involved public procurement contracts for the supply of raw, fresh and dry food products.
“MyCC found that such agreements had the objective of significantly preventing, restricting or distorting competition in relation to public procurement activities,” Idrus said in a statement.
The companies are alleged to have breached Section 4(1), read together with Sections 4(2)(d) and 4(3) of the Competition Act 2010.
However, Idrus stressed that the Proposed Decision represents only preliminary findings and should not be interpreted as a final determination that the companies have violated the law.
“At this stage, the findings are not conclusive. The enterprises involved still have the opportunity to present their case before any final decision is made,” he said.
The six companies have been informed of the proposed financial penalties and have been granted 30 days from the date of receiving the notice to submit written representations.
They will also be given the opportunity to present oral submissions before the commission at a later date.
Idrus said MyCC will only issue its Final Decision after carefully reviewing all representations submitted by the companies, along with the evidence gathered during the investigation process.
The case highlights the commission’s ongoing efforts to combat bid-rigging and anti-competitive practices in government procurement, which can undermine fair competition and increase costs to public institutions.
