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Defence Ministry pledges full cooperation in investigation of rigged bidding for tenders

KUALA LUMPUR: The Defence Ministry will provide full cooperation in the Malaysian Competition Commission's (MyCC) investigation involving seven companies that were found to have cheated on the bids of four tenders for the supply of goods and services at the ministry.

The ministry in a statement said they were ready to share all the information and further feedback needed to assist in the investigation process of the rigged bidding which occured from 2016 to 2020.

"The Defence Ministry is commited in ensuring that all procurement processes are conducted transparently and comply with the provisions outlined in the current treasury circular which is aimed at preventing any instances of leakage.

"The ministry has a policy to report directly and promptly to the Finance Ministry should there be any elements of doubt or forgery by companies in accordance with the Government Procurement Treasury Circular PK8," it said.

The statement referred to a media report in which MyCC revealed that seven companies were involved in bid-rigging activities in four tenders for the supply of goods and services for the ministry estimated to be worth RM20.8 million.

All companies, which were supposed to be rival bidders, were alleged to have conspired to manipulate the bidding process, which led to a rise in costs for public service projects, thus denying the entry of new players in the market.

This led the government to incur losses due to rising costs, and led to a waste of public funds.

The ministry said based on their review and records, several documents related to the four tenders have been sent to as evidence in the case.

"All relevant documents were submitted to MyCC after obtaining views and advice from the Legal Division of the Defence Ministry .

"All procurements involved in this investigation were conducted through open tenders and quotations according to the procurement procedures set by the Finance Ministry.

Based on the ministry's records, it said, four of the companies were involved in procurement for the supply of retail goods and maintenance services carried out through the method of open tender procurement, while three companies were involved in procurement carried out through quotations made by the Responsibility Centers under the ministry.

The ministry added that it will continue to firmly support the ethics of governance and transparent management involving all aspects of procurement activities.

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