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CNA
23-05-2025
- Business
- CNA
2 construction firms fined S$4.6m for bid rigging over 3 years
Singapore's competition watchdog has slapped two construction firms with a total of S$4.6 million in fines. Trust-Build and Hunan Fengtian were found to have colluded in bidding for upgrading works for three community clubs. Nadine Yeam with more.
New Paper
23-05-2025
- Business
- New Paper
Two construction firms fined $4.6m for rigging tender bids to upgrade community clubs
Two construction firms have been fined a total of $4.6 million by the competition watchdog for rigging tender bids called by the People's Association (PA). The Competition and Consumer Commission of Singapore (CCCS) said on May 23 that Trust-Build Engineering and Construction and Hunan Fengtian Construction Group Co had rigged bids for three tenders in 2022 for upgrading works in the Bukit Batok, Cheng San and Eunos community clubs. The tenders had a total value of around $56 million. They were for major upgrading works that included repair works, piling and scaffolding. CCCS' investigations, which began in July 2023, found that both companies colluded on their bid prices and tender submissions, giving one of them - Trust-Build - a better chance of winning the projects. Hunan Fengtian had prepared Trust-Build's tender submissions and proposed its bid prices for each of PA's tenders, CCCS said. Trust-Build's bid prices were lower than Hunan Fengtian's to make the former's bids appear more attractive. PA had noticed that similar words, diagrams and photos were used in the tender submissions from the two companies before the tenders were awarded, and reported the matter to CCCS. "CCCS found that the bid-rigging conduct eliminated the competitive pressure between the parties to submit their best offers to PA, even though none of the PA tenders were awarded to either of the parties," said the competition watchdog. "Such bid-rigging conduct has the potential to give the false impression that the bids received from the parties were genuine and competitive." At the time, the two firms were able to undertake high-value construction contracts - up to $50 million for Hunan Fengtian and $105 million for Trust-Build. On May 23, Trust-Build was fined $4.29 million, while Hunan Fengtian was fined $349,000. In a media briefing on May 23, Mr Caleb Tan, deputy director of legal and enforcement at CCCS, explained that the difference in fines for the two firms was because the penalties took into account the turnover of the company in the year the infringement took place as well as the year the infringement decision was issued. "The absolute figure doesn't indicate the relative seriousness or culpability of the parties," he said. An Accounting and Corporate Regulatory Authority search showed that Trust-Build is a local company, while Hunan Fengtian is a Chinese firm registered in Singapore. Mr Tan, who was the team lead for the investigation, said that representatives of the firms had met at a conference and remained in touch. Hunan Fengtian had intended to wind down its business in Singapore, and its general manager, Mr Xing Hongyun, agreed to help Trust-Build in this scheme as a means to get future business for his own company, Mr Tan said. The director of Trust-Build, Mr Wang Jian Jun, also wanted to learn from Hunan Fengtian's experience in bidding for public tenders, added Mr Tan. CCCS had obtained WhatsApp messages between Mr Xing and Mr Wang, who are both Singapore citizens, that showed them discussing the bid prices they would submit. In one instance in October 2022, Mr Wang asked what if they were awarded two tenders. In response, Mr Xing said: "PA can award three projects, what do you worry? You and me have two companies, can do two projects same time." In October 2024, both companies were issued legal notices, known as proposed infringement decisions, by the competition watchdog. They were able to make individual representations or provide other information in support of their case. CCCS said it had received written representations from each firm and took these into consideration in deciding to issue the infringement decision. Bukit Batok Community Club's tender was eventually awarded at $17.59 million, while Cheng San's was awarded at $21 million, CCCS had said in October. The tender for Eunos Community Club was discontinued for reasons unrelated to this case. The club, which had been closed since August 2022, is slated to open by the end of 2025. CCCS chief executive Alvin Koh said it will continue to take a more active enforcement stance, and take decisive and firm action against businesses that are found to have engaged in anti-competitive conduct. "In the context of public procurement where public funds are used, taxpayers are the ones who ultimately pay the price of such infringing conduct," he said. Mr Koh added that CCCS offers a leniency programme for businesses currently involved in anti-competitive agreements. If these businesses come forward with information about such agreements, they can receive a full waiver or substantial reduction in financial penalties.
Straits Times
23-05-2025
- Business
- Straits Times
Two construction firms fined $4.6m for rigging tender bids to upgrade community clubs
Trust-Build Engineering and Construction (left) and Hunan Fengtian Construction Group Co had rigged bids for three tenders in 2022 for upgrading works in the Bukit Batok, Cheng San and Eunos Community Clubs. ST PHOTOS: GIN TAY SINGAPORE – Two construction firms have been fined a total of $4.6 million by the competition watchdog for rigging tender bids called by the People's Association (PA). The Competition and Consumer Commission of Singapore (CCCS) said on May 23 that Trust-Build Engineering and Construction and Hunan Fengtian Construction Group Co had rigged bids for three tenders in 2022 for upgrading works in the Bukit Batok, Cheng San and Eunos Community Clubs. The tenders had a total value of around $56 million. They were for major upgrading works that included repair works, piling and scaffolding. CCCS' investigations, which began in July 2023, found that both companies colluded on their bid prices and tender submissions, giving one of them – Trust-Build – a better chance of winning the project. Hunan Fengtian had prepared Trust-Build's tender submissions and proposed their bid prices for each of PA's tenders, CCCS said. Trust-Build's bid prices were lower than Hunan Fengtian's to make their bids appear more attractive. PA had noticed that similar words, diagrams and photos were used in the tender submissions from the two companies before the tenders were awarded, and reported the matter to CCCS. 'CCCS found that the bid-rigging conduct eliminated the competitive pressure between the parties to submit their best offers to PA, even though none of the PA tenders were awarded to either of the parties,' said the competition watchdog. 'Such bid-rigging conduct has the potential to give the false impression that the bids received from the parties were genuine and competitive.' At the time, the two firms were able to undertake high-value construction contracts – up to $50 million for Hunan Fengtian and $105 million for Trust-Build. On May 23, Trust-Build was fined $4.29 million, while Hunan Fengtian was fined $349,000. In a media briefing on May 23, Mr Caleb Tan, deputy director of legal and enforcement at CCCS, explained that the difference in fines for the two firms was because the penalties took into account the turnover of the company in the year the infringement took place as well as the year the infringement decision was issued. 'The absolute figure doesn't indicate the relative seriousness or culpability of the parties,' he said. An Accounting and Corporate Regulatory Authority search showed that Trust-Build is a local company, while Hunan Fengtian is a Chinese firm registered in Singapore. Mr Tan, who was the team lead for the investigation, said that the directors of the firms had met at a conference and remained in touch. Hunan Fengtian had intended to wind down their business in Singapore, and its general manager, Mr Xing Hongyun, agreed to help Trust-Build in this scheme as a means to get future business for his own company, he said. The director of Trust-Build, Mr Wang Jian Jun, also wanted to learn from Hunan Fengtian's experience in bidding for public tenders, added Mr Tan. Both men are Singapore citizens. WhatsApp messages between Mr Xing and Mr Wang that were obtained by CCCS showed them discussing the bid prices they would submit. In one instance in October 2022, Mr Wang asked what if they were awarded two tenders. In response, Mr Xing said: 'PA can award three projects, what do you worry? You and me have two companies, can do two projects same time.' In October 2024, both companies were issued legal notices, known as proposed infringement decisions, by the competition watchdog. They were able to make individual representations or provide other information in support of their case. CCCS said it has received written representations from each firm and took it into consideration in deciding to issue the infringement decision. Bukit Batok Community Club's tender was eventually awarded at $17.59 million, while Cheng San's was awarded at $21 million, CCCS had said in October. The tender for Eunos Community Club was discontinued for reasons unrelated to this case. The club, which had been closed since August 2022, is slated to open by the end of 2025. CCCS chief executive Alvin Koh said it will continue to take a more active enforcement stance, and take decisive and firm action against businesses which are found to have engaged in anti-competitive conduct. 'In the context of public procurement where public funds are used, taxpayers are the ones who ultimately pay the price of such infringing conduct,' he said. Mr Koh added that CCCS offers a leniency programme for businesses currently involved in anti-competitive agreements. If these businesses come forward with information about such agreements, they could receive a full waiver or substantial reduction in financial penalties. Isabelle Liew is a journalist at The Straits Times. She covers housing issues in Singapore, with a focus on public housing. Join ST's WhatsApp Channel and get the latest news and must-reads.
CNA
23-05-2025
- Business
- CNA
Two construction firms fined S$4.6 million for rigging bids for People's Association projects
SINGAPORE: Two construction firms have been fined S$4.6 million (US$3.6 million) by Singapore's competition watchdog for colluding to rig bids for People's Association (PA) projects, the Competition and Consumer Commission of Singapore (CCCS) said on Friday (May 23). Hunan Fengtian Construction Group and Trust-Build Engineering & Construction were fined S$349,350 and S$4,295,059 respectively. The two companies have until Jul 23 to pay the penalties. The companies were found to have coordinated bid submissions on three tenders for upgrading works at community clubs in Bukit Batok, Cheng San and Eunos in 2022. The value of their tenders was about S$56 million (US$43 million) in total, CCCS said. COLLUSION UNDERMINED COMPETITION Bid-rigging occurs when suppliers collude on bid submissions for tenders. They might take turns to win a tender by agreeing on terms, or they may choose not to participate in certain tenders after agreeing who should win. In this instance, CCCS found that Trust-Build was the identified winner, while Hunan Fengtian was the support bidder. Hunan Fengtian had prepared tender submissions on behalf of Trust-Build, even proposing its bid prices for each of the tenders. CCCS added that Hunan Fengtian was "aware" of Trust-Build's likely bid prices and the contents of its tender submissions despite appearing to compete against the latter for the tenders. This conduct eliminated the competitive pressure on both parties to present their best offers to PA, the competition watchdog said. As Trust-Build's bid prices were lower than Hunan Fengtian's, they had a better chance of winning. Such practices violate competition law, which requires businesses to act independently in the market. The affected tenders were called between August and October 2022, and were for general construction and major repair of buildings, CCCS said. The value of the Bukit Batok community club tender was about S$17.6 million, and had 10 tenderers. The Cheng San community club tender was valued at S$21 million and had 15 bidders. The Eunos community club tender was valued at about S$17 million, and had 11 tenderers, but was later aborted for undisclosed reasons. Mr Caleb Tan, deputy director of legal and enforcement at CCCS, said that the PA was "very vigilant" when they received the tender submissions. They had noticed similarities in Hunan Fengtian and Trust-Build's submissions, in terms of words and diagrams used, he added. The PA reported the suspected bid-rigging to CCCS, with both companies subsequently excluded from the tender evaluations. None of the PA tenders were awarded to either firm. INVESTIGATIONS CCCS launched investigations in July 2023 and conducted raids at the businesses of both companies in November that year. During this time, CCCS secured evidence from various sources, including WhatsApp messages between both parties. As part of the legal process under the Competition Act 2004, CCCS issued a proposed infringement decision to both parties in October 2024, giving both parties a chance to respond before a final decision by CCCS. Although Trust-Build faced a higher penalty than Hunan Fengtian in absolute figures, it does not mean that Hunan Fengtian was "less culpable", Mr Tan said. Mr Tan said that the two companies were industry contacts. They had previously met at a conference and remained in touch about developments in the market. The general manager of Hunan Fengtian had colluded with Trust-Build to try to get future business for his own company, as the company had intentions of winding down in Singapore, Mr Tan said. For Trust-Build, the incentive was for its director to learn from Hunan Fengtian's experience in bidding for public tenders, he added. Mr Alvin Koh, chief executive of CCCS, said that bid-rigging undermines fair competition, distorts the regular operation of market forces and prevents customers from obtaining genuine and competitive offers. 'In the context of public procurement where public funds are used, taxpayers are the ones who ultimately pay the price of such infringing conduct,' he added. He urged businesses that are approached to take part in anti-competitive agreements to reject such offers and report them to CCCS. The commission's leniency programme means that parties that come forward voluntarily with information about anti-competitive agreements may receive reduced or waived financial penalties.
