KBS collaborates with MyCC to curb bid-rigging cartels

PUTRAJAYA: The Ministry of Youth and Sports (KBS) is collaborating with the Malaysian Competition Commission (MyCC) to curb bid-rigging cartels involving tenders under the ministry for cost savings.

Youth and Sports Minister Hannah Yeoh said offers from companies or contractors participating in tenders and quotations will also be scrutinised to see if they are free from bid-rigging or collusion, in addition to technical and financial aspects to avoid leaks.

“KBS wants to remind companies or contractors to make a declaration of noncollusion and not engage in any price-fixing pact when participating in any tenderbidding process at KBS.

“We don’t want costs to increase because of this cartel issue.

“If the committee feels there is something amiss with the bids, MyCC will be activated.

“MyCC will examine why all these bids have a similar price and details because we want this process to be transparent so that the contract is awarded to the party really capable of carrying out the project,” she told a press conference at Menara KBS here yesterday.

The minister said the three main focuses of the KPS-MyCC cooperation are on advocacy activities, policy advice from the MyCC, and information-sharing and reporting of cases suspected to be a violation under the Competition Act 2010 for further investigation.

Hannah said, given that the budget allocation for KBS is small, every saving is important to use the funds for sports development and upgrading facilities under the ministry.

She also gave a reminder that the same conditions apply to sports associations and companies in the Sports Matching Grant (GPS) application for the organisation of sports competitions or events at the international and national levels.

“In the (GPS) committee, we are also observing the trend of applications to ensure there are no cartels, if there are, KBS will report to Malaysian AntiCorruption Commission.

“As I said, this is the year of clean-up, last year was quick reforms,” she said.

Meanwhile, MyCC chief executive officer Iskandar Ismail said the agency could impose a penalty of 10 per cent of the tender revenue or suggest to the Ministry of Finance to blacklist those involved.

“This bid-rigging cartel has happened all too often in Malaysia, we are investigating more than 500 companies involving tenders of more than RM3 billion.

“So, we hope that the relevant parties, especially other ministries can cooperate with MyCC like KBS,” he said.

He also cited an example where eight companies were fined RM1.5 million for the offence of conspiring to rig bids for an Information Technology (IT) project costing RM2 million.