The syndicate is known as PWD’s contractor of choice due to its strong influence in the department and the Rural Development Ministry.
The company behind the syndicate that monopolised government contracts was previously the first runner-up in the Works Ministry’s “Outstanding Contractor Award”, said a Malaysian Anti-Corruption Commission (MACC) source.
The source told The Malaysian Insight the company, owned by the syndicate ringleader, a 47-year-old man, is still carrying out facility management projects for government complexes in Putrajaya.
“This syndicate is well-known among Bumiputera contractors for winning Public Works Department (PWD) contracts in the last few years. If they submit a tender, there is no chance for others to bag the contract.
“The contracts are awarded through help from insiders and not legitimate means, including through the surveyor from a government agency who was nabbed on Tuesday,” the source told The Malaysian Insight.
The source said information gathered from other contractors helped MACC nab the culprits and cripple the syndicate.
“Among the government tenders the companies have won include facility maintenance, housekeeping, landscaping, pest control, civil engineering and others in Putrajaya.
“The syndicate is known as PWD’s contractor of choice due to its strong influence in the department and the Rural Development Ministry,” the source said.
According to the source, the syndicate leader is not a public figure, but he and his men are well-known among tender bidders, contractors, procurement departments and Putrajaya PWD.
“Checks revealed that the parent company and subsidiaries are registered under the name of a Datuk, his siblings and his son while the remaining 150 companies in the cartel are registered under a proxy,” the source said.
Investigators found RM3.5 million stashed in the home of the ringleader following a raid at his Klang Valley residence on Tuesday.
Sources told The Malaysian Insight that luxury vehicles worth RM15.7 million, along with properties, including bungalows, shophouses and offices worth RM29 million, were also seized in the raid.
A total of 644 personal accounts, as well as company accounts estimated to be worth RM100 million, were also frozen.
According to another source, apart from owning several expensive properties and keeping huge amounts of cash, the suspect also owned a yacht and two helicopters.
It was reported that this syndicate has monopolised government projects through tenders or quotations worth more than RM3.8 billion since 2014.
As of today, eight men have been arrested and remanded for six days until April 10 to assist in the investigations.
The suspects, aged between 33 and 47, were arrested on suspicion of monopolising 345 tenders from several ministries and government agencies nationwide over the past seven years.
The suspects were nabbed at a location in the Klang Valley, where they usually gathered to fill out the tender forms. – TMI