Hong Kong graft-buster charges 23 in connection with alleged renovation scams involving contracts worth HK$520 million in biggest case of its kind
- Independent Commission Against Corruption says the case involves bribes amounting to more than HK$6.5 million
- Contracts covered renovations, lift shaft work, air-conditioning improvements and property management at 10 buildings over five-year period
Hong Kong’s graft-buster has charged 23 people in connection with alleged housing renovation scams involving contracts worth HK$520 million, in the largest anti-corruption operation of its kind.
“This is the ICAC’s largest case in its history on building management and maintenance, in terms of the number of people prosecuted, total value of the projects involved, and the amount of bribes paid,” said Grace Yee Hin-lai, principal investigator of the ICAC’s operations department.
“Following the ICAC’s timely interventions, the renovation projects of most of the properties were not yet given to the suspects involved in this case. We believe the corruption syndicate has already been disbanded.”
The 23 suspects face 11 charges of conspiracy to offer and accept bribes and conspiracy to defraud over multiple contracts including for renovations, lift shafts, air-conditioning system improvements, property management, repairs and consultancy, between early 2018 and mid-2023.
The defendants, who were charged on Thursday, were all released on bail and are expected to appear at Eastern Court on Monday.
Yee stressed that investigations were continuing and more charges had not been ruled out.
The case covers 10 residential and commercial buildings across Hong Kong, including Beach Village and Greenvale Village in Discovery Bay, and Mount Parker Residences in Quarry Bay.
The value of each contract ranged from HK$460,000 to HK$160 million, while the largest bribe allegedly offered was HK$2 million.
The suspects comprise 12 middlemen, one project consultant, five contractors, three members of an incorporated owners’ committee, and two employees of property management companies.
Three of the middlemen were suspected to be the backbone members of the alleged syndicate.
ICAC chief investigator Bill Ng Siu-kei said that in one case, three middlemen allegedly offered HK$2 million in bribes to the chairman and members of the owners’ committee of a private residential building in Kwun Tong to win a HK$20 million renovation and property management contract.
In another instance, five people – two middlemen, a project consultant, a property management company employee and a contractor – allegedly conspired to defraud the owners’ committee of a commercial building in Tsim Sha Tsui.
By excluding other potential firms from applying for a HK$3 million lift shaft project, they caused a certain company to be selected as the contractor.
The ICAC’s Alpha Leung Chung-ping said building maintenance was prone to corruption because of the complex procedures involved but it was preventable.
“Owners should actively participate in building management by attending meetings in person and exercising their right to vote in important matters, as well as monitor the practice of the owners’ committee,” said Leung, a principal corruption prevention officer.
They could set up their own anti-corruption protocol with reference to the guidelines issued by the commission, he added.
Leung said owners could use the “smart tender” electronic tendering platform of the Urban Renewal Authority to reduce the chance of corruption on projects.
