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Theodora Yu

Hong Kong authorities have arrested 50 people, including some with alleged triad backgrounds, in a crackdown on bid-rigging activities involving 27 housing estates and buildings and about HK$500 million (US$64.1 million) in contracts.
The Independent Commission Against Corruption (ICAC), police and antitrust regulator the Competition Commission on Monday revealed details of their joint operation, which was conducted last week.
The ICAC said the suspects included the alleged mastermind and core members of a syndicate behind bid-rigging activities for the repair and maintenance of residential buildings.
“The ICAC, police and the Competition Commission call on the public to actively participate in building management affairs and proactively report any illegal activities to law enforcement agencies,” the anti-corruption agency said.
The three agencies searched 39 premises, including the homes of suspects, and seized documents and accounting records. Officers also raided premises allegedly controlled by triads for suspected illegal activities. The ICAC and police arrested 50 people, aged 24 to 77.
Corruption complaints from the public triggered the operation. They concerned maintenance work, leading the ICAC to a contractor for major renovation works for three composite and private residential buildings in Eastern, Wan Chai and Yau Tsim Mong districts with contracts estimated to be worth HK$200 million, the ICAC said.
As a result of the complaints and subsequent investigation, the ICAC intercepted the construction contracts that had not yet been awarded.
The contractor, believed to be the syndicate head, was suspected of bribing project consultants and some members of owners’ corporations to secure the three major contracts.
“The project contractor allegedly obtained help through bribery, including concealing the company’s conviction records in tender analysis reports to win the bids, and splitting the major renovation project into small-scale works to circumvent procedures requiring approval by the owners,” the ICAC said.
“As registered inspectors are also suspected of failing to perform their duties, the ICAC has referred the matter to the Buildings Department for follow-up action.”

During the operation, the ICAC arrested eight men and two women, aged 39 to 77, including the contractor, project consultants, registered inspectors and chairpersons and a member of the owners’ corporations.
It also seized more than HK$1.2 million in cash from the premises of a project consultant, suspected to be part of the bribes involved.
The Competition Commission’s action concerned building maintenance projects of 23 housing estates and buildings in eight districts across Hong Kong Island, Kowloon and the New Territories, involving HK$300 million worth of contracts.
Some of the project tenders were overturned, while others had started or were already completed before the commission’s investigation.
The commission also found the syndicate had disseminated pricing instructions to its members, commonly referred to as “homework”, in the tendering processes, so as to control their bidding prices.
The syndicate was found to have collaborated with another bid-rigging syndicate through a middleman, with each arranging for their own contractors to take part in the tendering processes of some projects to enhance their chances of winning.
During the operation last Wednesday, police also cracked down on three illegal gambling establishments suspected to be controlled by triad-related personnel and arrested 25 men and 12 women, aged between 24 and 62.
Separately, police detained a construction company director, a structural engineer and the director of a contractor company. The three men, aged 40 to 69, were arrested on suspicion of submitting 13 forged works completion certificates to the Buildings Department in 2022, for minor works at 13 flats in a housing estate on Hong Kong Island.
The registered inspector’s signatures were allegedly signed after the person had died.


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Crime in Hong Kong

50 arrested in HK$500m building maintenance bid-rigging crackdown

The ICAC arrested 10 people, including the contractor, project consultants, registered inspectors and members of the owners’ corporations. Photo: Jelly Tse

Police arrested 40 people in total. Photo: Sun Yeung

Maintenance projects at housing estates across Hong Kong were involved. Photo: Sam Tsang

Hong Kong’s competition watchdog tightens tender clauses to target bid-rigging

Wang Fuk Court at Tai Po. At least two bid-rigging syndicates were linked to the tender for the HK$336 million maintenance project that was under way when the blaze broke out. Photo: Sam Tsang

When asked if the commission would mandate the requirements across all private tenders, chairman Jat Sew-tong pointed to constraints within private business activity. Photo: Handout

Bid-rigging trial over HK$700 million in renovation work set for 2028 at earliest

The fire-blackened buildings of Wang Fuk Court in Tai Po. Dream Building is accused of conspiring with three other companies to exchange information about their bids on the estate’s renovation project. Photo Sam Tsang

Wang Fuk Court. One of Cheung Kwing-kuen’s companies submitted a bid that was lower than its competitors’, but he did not win the tender. Photo: Elson Li

News

Hong Kong

Law and Crime

Independent Commission Against Corruption, police and Competition Commission launch joint operation triggered by public complaints


Independent Commission Against Corruption, police and Competition Commission launch joint operation triggered by public complaints.


Crime

Independent Commission Against Corruption (ICAC)

Hong Kong society

50 arrested in HK$500m building maintenance bid-rigging crackdown

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Independent Commission Against Corruption, police and Competition Commission launch joint operation triggered by public complaints

Independent Commission Against Corruption, police and Competition Commission launch joint operation triggered by public complaints