A SAYS review of CIDB-listed construction companies found many sharing the same phone number, with some contacts linked to as many as 16 companies.
The board said it is aware that some registered contractors share business addresses or contact details. However, this does not automatically indicate proxy and shell company practices, as such overlaps can arise from legitimate arrangements such as shared offices, group company structures, or co-located operations.
They however recognise that unusual patterns in company information — including shared contact details, management overlaps or repetitive declarations — may serve as indicators of proxy practices.
"Where such indicators are detected during registration, audit or compliance reviews, CIDB will subject the companies concerned to enhanced scrutiny under its regulatory framework."
— CIDB, to SAYSThe warning follows a SAYS exposé on the possible use of proxies by construction companies to boost their chances of winning government contracts.
A SAYS review of CIDB-listed construction companies found many sharing the same phone number, with some contacts linked to as many as 16 companies.
The bulk of these companies either shared the same CIDB grade, typically G1, or held a range of grades from G1 to G7.
In Malaysia, a CIDB grade indicates the size and value of projects a contractor is allowed to handle.
Many companies in the CIDB database are registered under the same contact number. · Image via SAYS
Some contractors who responded to SAYS admitted to managing multiple companies using the same contact number.
In an investigation spanning nearly two years, the SAYS journalist also signed up as a registered contractor and participated in a government bidding process to observe firsthand how some players manipulate the system to gain an advantage.
CIDB said that while tender evaluation and procurement misconduct fall under procuring authorities and enforcement agencies, it remains proactive in flagging potential concerns and supporting inter-agency referrals.
If CIDB identifies possible proxy practices, it will launch compliance audits or investigations and impose administrative or disciplinary measures on contractor registrations.
This includes suspension or cancellation where breaches are confirmed. It may also refer cases to relevant authorities if procurement-related misconduct is suspected.
"CIDB works closely with other government agencies to ensure that potential proxy arrangements are addressed through a coordinated and whole-of-government approach, in line with each agency's statutory responsibilities."
— CIDB, to SAYSThe board said that while tender evaluation and procurement misconduct fall under procuring authorities and enforcement agencies, CIDB remains proactive in flagging potential concerns and supporting inter-agency referrals.
