THE Malaysia Competition Commission (MyCC) has imposed penalties totalling RM2.98 million on three contractor firms found guilty of bid-rigging in public tenders worth more than RM44 million.
MyCC chief executive officer Datuk Iskandar Ismail said the three companies – Abadi Malaysia Sdn Bhd, Kota Landskap Sdn Bhd and Usia Maintenance Sdn Bhd – were found to have breached Section 4 of the Competition Act 2010 (Act 712).
“The cartel activity involved six tenders issued by Perbadanan Putrajaya (PPj) between 2018 and 2021, relating to building and facility maintenance, landscaping and civil engineering works,” he said at a press conference today.
He said the case began with a complaint regarding suspected bid-rigging in PPj’s procurement processes.
“Following a preliminary assessment, we identified nine enterprises suspected of collusion. A full investigation was carried out, including raids on company premises, statements from 24 individuals, requests for information and analysis of relevant documents,” he said.
Based on the findings, MyCC issued a proposed decision in September 2024, with written representations submitted by the implicated parties in November 2024 and March this year.
“After reviewing the submissions thoroughly, MyCC concluded that the firms had indeed violated the Act and issued an infringement decision yesterday,” Iskandar said.
He added that Abadi Malaysia acted as the coordinator of the cartel.
“Coordination of bids was carried out via WhatsApp, email and meetings. Investigators also found that tender documents were prepared collectively at one location by staff from all three companies, under the direction of an Abadi Malaysia director.”
During a raid, MyCC seized documents belonging to all three companies at Kota Landskap’s premises, showing evidence of centralised coordination.
The collusion enabled Abadi Malaysia and Usia Maintenance to each win two of the six tenders.
“Nonetheless, they were also found guilty in the remaining four tenders due to evidence of cartel behaviour. Kota Landskap, meanwhile, exhibited cartel conduct throughout all six tenders,” Iskandar said.
The investigation also revealed personal and familial links between directors of the companies.
He confirmed that no officials from PPj were involved in the misconduct, noting that the local authority had filed the initial complaint and cooperated fully with investigators.
“MyCC currently has 14 ongoing investigations involving more than 500 companies and tenders valued at RM2.3 billion,” he said.
He urged all market participants to take this case as a cautionary tale and renew their commitment to ethical business practices.
“All businesses must compete on merit, not collusion. Both public and private sector organisations must remain vigilant against anti-competitive conduct during procurement,” he added. - July 8, 2025
