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FOUR members of the association that oversees pest control in Singapore, including its president, will get to keep their positions even though they were found guilty of rigging contract bids.
The Singapore Pest Management Association voted on Friday to issue strong warnings to the executives, but refused to kick them from its governing council.
'We were satisfied that they are sincerely repentant for their actions,' said former association president Major (Retired) Ganga-
dharan Surajan. 'After all, they did not commit a criminal offence.
Six companies - Aardwolf Pestkare, Alliance Pest Management, Elite Pest Management, Killem Pest, PestBusters and Rentokil Initial - were fined a total of $260,000 by the Competition Commission of Singapore early this month for bid-rigging. Senior managers from four of the six companies head up the pest control association.
They were caught red-handed for rigging contracts involving the termite killer Agenda. The six firms are the only ones here approved to use the pesticide.
Only four of the 30 association members who attended the Friday meeting voted to give them the boot.
'They offered their sincere apologies for having stirred up the hornet's nest,' said Maj (Ret) Surajan.
Established in 1987, the then Pest Control Association was renamed in 2001. It provides accreditation and training for industry players.
A damning 150-page report by the competition commission laid bare a lucrative bid-rigging scheme involving contracts worth about $2.5 million annually.
Viewed as industry leaders, the six have a combined annual turn-
over of more than $330 million, counting government agencies, five-star hotels and hospitals as their major clients.
The companies are now dealing with fallout from the report.
Industry insiders say several of the six have already lost major contracts.
'We've seen at least 20 per cent more inquiries from new clients,' said Mr David Santhanansamy of pest management firm Gecko International. He would not reveal whether these were former clients of any of the six.
Meanwhile, former PestBusters client Alexandra Hospital is 'seeking legal advice', said a hospital spokesman.
The hospital was a victim of the bid-rigging cartel, and had to fork out $349,000 for a termite problem - a price that could otherwise have been lower.
However, the spokesman said it was too early to say if legal action would be taken and lawyers will still assess the case.
Six professionals from the industry, including two not in the pest management association, told The Straits Times they felt the six companies had not committed a serious lapse, and hoped the industry could move on from the debacle.
None would go on record.
Meanwhile, association president and Alliance director Andrew Chan said he is thankful to get a second chance.
'It's unfortunate we were the first industry to be found guilty of these practices.
'We have to work doubly hard to rebuild the credibility of the industry,' he said.
'I'm relieved to have the opportunity to do that.'
taniat@sph.com.sg
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