SINGAPORE - Three construction companies were found to have colluded to rig the bids for eight tenders and quotations called by Wildlife Reserves Singapore (WRS), said the Competition and Consumer Commission of Singapore (CCCS) on Thursday (June 4).
The companies - Shin Yong Construction, Geoscapes and Hong Power Engineering - had exchanged bid information and coordinated their bids for the WRS quotations between July 1, 2015, and Oct 6, 2016.
They were fined a total of $32,098 for infringing Section 34 of the Competition Act, said CCCS.
Geoscapes was fined $19,739, while Shin Yong Construction was fined $7,148. Hong Power Engineering was fined $5,211.
CCCS said it launched an investigation into the three companies after WRS submitted a complaint on Aug 28, 2015.
WRS had received e-mails from an anonymous complainant on Aug 17 and 27 that year alleging bid-rigging of renovation, maintenance and construction projects at WRS.
Simultaneous inspections were conducted on Oct 6, 2016, at the premises of several WRS' vendors, including Shin Yong, Geoscapes and Hong Power.
Interviews were also held on-site with Shin Yong's project manager Toh Yong Soon, Geoscapes owner and director Koh Kian Hee, and the owner of Hong Power Tan Chuan Hong, said CCCS.
Two former employees of WRS were also interviewed by CCCS, but were not identified.
Shortly after the inspections, all three companies applied for leniency under a CCCS programme that provides for such in return for cartel members' cooperation in giving information and evidence of their activities. They admitted to colluding to rig bids in the quotations called by WRS.
Meanwhile, WRS barred the companies from bidding for any of its projects.
On Jan 21 this year, CCCS issued a Proposed Infringement Decision to the three companies. None submitted written representations to the CCCS.
Chief executive of CCCS Sia Aik Kor said bid-rigging is one of the most harmful types of anti-competitive conduct as it eliminates the pressure on suppliers to submit their best offers to a customer.
She added that customers have an important role to play in protecting themselves against bid-rigging.
"While any customer can be a victim of bid-rigging, customers can protect themselves by spotting suspicious bids. Customers should study the bid submissions carefully to see if the bids submitted by suppliers are independent," said Ms Sia.
WRS director of procurement Kelly Chew said in the CCCS statement that it has taken steps to protect itself from such anti-competitive activities in the future.
"These include centralising the handling of tenders, defaulting to the calling of open tenders to encourage more vendors, including new ones, to participate, and ensuring goods and services are delivered in line with the tender specifications," said Ms Chew, adding that WRS has an active whistle-blower policy shared with those they work with.
With this case, CCCS has issued a total of five Infringement Decisions against companies for bid rigging. Motor vehicle traders and pest control companies were involved in the previous cases.
