The Competition and Consumer Commission of Singapore (CCCS) has imposed penalties totalling S$4,644,409 on Trust-Build Engineering & Construction Pte Ltd (TB) and Hunan Fengtian Construction Group Co., Ltd (HNFT) for colluding in three major public tenders in 2022.
The findings, detailed in an extensive 60-page infringement decision released on 23 May 2025, expose deliberate and structured bid-rigging designed to subvert the competitive procurement process.
The case centres on three tenders called by the People’s Association (PA) for upgrading works at Bukit Batok, Cheng San, and Eunos Community Clubs.
The total estimated value of the tenders was approximately S$56 million. Although neither party was ultimately awarded the contracts, CCCS found that their conduct infringed Section 34 of the Competition Act 2004 by eliminating genuine competition.
According to CCCS, the collusion was orchestrated primarily by Mr Xing Hongyun, General Manager of HNFT’s Singapore branch, and Mr Wang Jianjun, sole director of TB.
The decision found that HNFT, although instructed by its China-based head office not to participate in new tenders, continued to involve itself by preparing TB’s submissions and proposing TB’s bid prices.
These actions were taken with the hope that TB would subcontract work to Raintree D&B Pte Ltd, a related company controlled by Xing.
HNFT not only created TB’s documents and set its bid prices but also submitted cover bids under its own name. These bids were deliberately priced higher to make TB’s submissions appear more competitive. This occurred across all three tenders.
In one striking example related to the Bukit Batok Community Club (BBCC) tender, WhatsApp messages showed Xing asking Wang if he could submit the tender “under your company”, to which Wang agreed.
HNFT later prepared spreadsheets listing TB’s bid prices alongside HNFT’s higher prices, explicitly marked with “3% added” and “HNFT based on higher sum.” TB then submitted its bid at the exact figure recommended by HNFT. Ramo Industries ultimately won the BBCC tender.
Similar coordination occurred for the Cheng San and Eunos tenders. Xing messaged Wang about focusing only on those tenders and again prepared submission documents.
TB submitted the exact bid prices proposed by HNFT.
In one case, TB’s final bid for the Eunos project was S$19,520,176—matching the figure sent by Xing. HNFT’s own bid was S$895,279 higher.
CCCS’s investigation began in July 2023 following a tip-off by PA, which had noticed possible bid anomalies before awards were made.
CCCS raided the firms’ premises in November 2023 and conducted multiple interviews with key personnel.
The evidence included WhatsApp conversations, emails, and detailed bid spreadsheets recovered during these inspections.
The Commission emphasised that such conduct, while not resulting in contract awards in this instance, nonetheless distorted the procurement process.
CCCS noted that the bids gave the false impression of competition and could have misled the tendering authority had the irregularities not been detected.
Financial penalties were assessed using a six-step framework considering factors such as turnover, the seriousness and duration of the infringement, and aggravating or mitigating circumstances.
TB was fined S$4,295,059 and HNFT S$349,350. The disparity reflects TB’s larger role and benefit from the scheme, as well as its higher turnover and capability to handle larger tenders.
CCCS rejected arguments by both firms that there was no real collusion. TB claimed it merely used HNFT for tender preparation and was unaware of the dual submissions.
HNFT asserted that its bids were not genuine attempts to compete but submitted for internal records. CCCS dismissed these as implausible and inconsistent with the evidence, noting clear indications of knowledge and intent.
In delivering the penalties, CCCS reiterated its stance that bid-rigging is one of the most egregious forms of anti-competitive conduct, particularly harmful in public procurement where taxpayer funds are involved.
Mr Alvin Koh, Chief Executive of CCCS, warned that the Commission would take “decisive and firm action” against similar conduct in future.
Businesses were reminded of CCCS’s leniency programme, which allows for full or partial waivers of penalties for parties that voluntarily disclose cartel activity.
Individuals who report cartel conduct may receive monetary rewards under a whistle-blowing scheme, with identities protected in strict confidence.
The post CCCS imposes S$4.6 million in penalties on two contractors for colluding in S$56 million public tenders appeared first on The Online Citizen.
