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Media Statement From Max (Muresh) Kumar / Max Build Re Commerce Commission Charges For ‘Bid Rigging'

Max (Munesh) Kumar, Director of Max Build - a construction business specialising in concrete sector work - confirmed today that he pleaded guilty to the charge of ‘cartel conduct’ or ‘bid rigging’, for actions he took in early 2022 following Covid lockdowns.

“I entirely regret my actions,” he said. “All I can say is that I acted foolishly, during a period of intense stress and pressure, which I very quickly regretted. I wish I could undo it.”

Mr Kumar said he admitted his mistake early on, and has made every effort since then to take full responsibility, including openly sharing information and co-operating fully with the Commerce Commission.

“I have even tried to return the full value of the contract we were awarded and subsequently delivered - every single dollar paid to us. But this reparation has been rejected so far,” he said.

“After Covid, for the first time, we were facing serious financial pressure on the business. There was a three or four month period where I found myself consumed by the fear of needing to let people go - good people, that have worked for us and been loyal for years.

“So, when tenders finally emerged after lockdown, they seemed to represent the lifeline we desperately needed and, blindly, I thought might solve all our problems. If only we could secure the work, everyone could keep their jobs, and a very good business that we had built up since 2009 might survive, the voice in my head was saying.

“I reached out to a colleague in the industry to ask if he would help me. He agreed to tender marginally higher than us. We then bid at our regular prices - I truly believe our own tender pricing was fair and reasonable as the baseline. I wasn’t trying to rip anyone off or unfairly profit, but to improve our chances to get the work.

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“At the time, I also believed there was to be multiple bidders, though this ultimately turned out not to be the case,” Mr Kumar said.

“I didn’t know then that what I was doing constituted ‘bid rigging’, let alone that new laws meant this could now lead to a criminal offence and / or charges. Looking back, I don’t even recognise myself at that time. I have never even considered anything like this before – it’s just not who I am. It doesn’t reflect the values or conduct of either myself or the business prior to this.

“Knowing what I do now, I have even offered to help the Commission to educate others in the building industry to better understand the new law, to help others to avoid making the mistakes I made.

“As the first case that has gone ahead since the new, tougher penalties have been introduced, I can see that there is an appetite to make an example of my serious error of judgement in these circumstances.

“I just hope I will have an opportunity to demonstrate what I have learned, and regain the trust we have previously enjoyed in our client relationships. I’ve been humbled by the compassion and support already shown by some clients, when I have met with them to explain the situation.

“As I said, I take full responsibility. Nothing had prepared me for the situation we faced at that time and, clearly, I got it wrong and will face the consequences of that.”

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