KUALA LUMPUR: Ignorance and greed among industry players before the introduction of the Competition Act 2010 had allowed a bid-rigging culture to take root in the country, the Malaysia Competition Commission (MyCC) said.

MyCC chief executive officer Iskandar Ismail said before 2012, despite existing legislation, including anti-corruption laws, the Penal Code and government circulars, bid-rigging cartels circumvented the rules to dominate and control certain markets, making it difficult for new players to enter.

He added that the complexity of the Competition Act made it challenging for civil servants and other stakeholders to grasp the problems caused by the practice during the act's early years.

"In a way, bid-rigging became a norm and somehow continued after the law was established.

"We want to ensure that true competition takes place. Imagine a 100m Olympic race where competitors agreed, 'this time you win, next time I'll win'. You would feel cheated and there would be no point in holding the open tender," Iskandar told the New Straits Times.

Iskandar said before 2022, MyCC focused on educating public and civil servants about bid-rigging.

This effort, he said, had begun to bear fruit based on increasing support from civil servants, as well as ministries and agencies.

MyCC, he said, also provided insight to ministries and agencies to ensure that tender procurements addressed potential bid-rigging practices.

He said based on MyCC's observation, cartel involvement in bidding activities had decreased from an average of 50 companies in the past to 20 currently.

He attributed this to active enforcement of the law and other existing legislation, which ensured that cartel activities were constantly monitored.

In March, Deputy Domestic Trade and Cost of Living Minister Fuziah Salleh told the Dewan Rakyat that since MyCC's establishment in 2011, it had imposed financial penalties on more than 250 companies for cartel-related violations and abuse of dominant power amounting to more than RM500 million.

On Sept 5, MyCC fined seven companies RM446,092.95 for their involvement in bid-rigging related to a Defence Ministry tender worth RM20 million.

The agency was also investigating the involvement of 13 bid-rigging cartels in government tenders worth RM2.37 billion, covering 561 companies in various industries, including construction, transportation and pharmaceuticals.

https://www.nst.com.my/news/nation/2024/09/1109356/bid-rigging-thrived-due-ignorance-greed