Competition Commission uncovers five firms involved in tender bid-rigging for Singapore F1 Grand Prix contract

The five companies allegedly involved in tender bid-rigging for the provision of electrical services for the Formula 1 Singapore Grand Prix from 2015 to 2017 are: the Cyclect Group, comprised of Chemicrete Enterprises, Cyclect Electrical Engineering
The five companies allegedly involved in tender bid-rigging for the provision of electrical services for the Formula 1 Singapore Grand Prix from 2015 to 2017 are: the Cyclect Group, comprised of Chemicrete Enterprises, Cyclect Electrical Engineering and Cyclect Holdings, as well as HPH Engineering and Peak Top Engineering.PHOTO: ST FILE

SINGAPORE - The Competition Commission of Singapore (CCS) issued a Proposed Infringement Decision (PID) against five companies on Tuesday (March 21) for their alleged involvement in tender bid-rigging.

The bids in question including for the provision of electrical services for the Formula 1 Singapore Grand Prix from 2015 to 2017.

The firms are: the Cyclect Group, comprised of Chemicrete Enterprises, Cyclect Electrical Engineering and Cyclect Holdings, as well as HPH Engineering and Peak Top Engineering.

In a release on Tuesday, the CCS said began its investigations after receiving a complaint on the alleged anti-competitive agreements.

In the case of the F1 tender, called on Dec 8 2014 by Faithful+Gould Project Management on behalf of Singapore GP, a total of four bids from Chemicrete, Cyclect Electrical, HPH and Peak Top were submitted.

After assessment, the tender was awarded on April 23 2015 to Cyclect Electrical, which submitted the lowest bid for the three-year contract.

CCS's investigations found that Chemicrete, Cyclect Electrical, HPH and Peak Top colluded in the submission of their bids for the F1 tender. Instead of each party independently preparing their own competitive bid, the Cyclect Group prepared all price schedules and final bid prices for HPH's and Peak Top's submissions, with the intention that Cyclect Electrical would win the tender.

In a separate case, international school Gems World Academy called for an invitation to quote for the procurement of barcode tagging services for its campus property.

Gems received a total of three quotes, including from quotes from Chemicrete and HPH. On March 31, the tender was awarded to Chemicrete, which had submitted the lowest quote.

According to CCS's investigations, Chemicrete sought HPH's assistance to win the tender. Chemicrete forwarded a competing quote to be submitted by HPH to Gems that was higher than Chemicrete's own quote.

Under the Competition Act, business entities should not enter into any agreement or engage in any concerted practice with the object or effect of preventing, restricting or distorting competition.

They should instead independently determine their responses to competition and refrain from participating in any discussion, coordination, or plan which is anti-competitive in nature, the CCS said.

The Cyclect Group, HPH and Peak Top have six weeks from receipt of CCS's decision to make their representations to CCS, before it makes it final decision.