Hong Kong’s corruption and antitrust watchdogs arrest 20 suspects over building maintenance project bid-rigging
- In joint action carried out on Tuesday and Wednesday, Independent Commission Against Corruption and Competition Commission arrest 17 men and three women
- Suspects allegedly took part in anticompetitive practices to manipulate bidding processes for building maintenance work, exaggerating contract amounts
In the joint action carried out on Tuesday and Wednesday, the Independent Commission Against Corruption (ICAC) and the Competition Commission arrested 17 men and three women aged between 36 and 70.
They included suspected key figures and backbone members of the corruption syndicate, which comprised contractors, consultants, middlemen, members of incorporated owners’ committees and property management firms.
The agencies raided about 40 premises, including homes and offices of the contractors, consultancies and property management companies, seizing electronic devices and documents related to building maintenance projects.
“The joint operation conducted by the ICAC and the Competition Commission demonstrated the determination of the two agencies in cracking down on corruption and potential anticompetitive activities in building maintenance,” the agencies said.
The suspects had allegedly taken part in corruption and anticompetitive practices to manipulate bidding processes for building maintenance work, exaggerating contract amounts and helping associated contractors to secure the projects and consultancy jobs.
They were also said to have manipulated project supervision and payment releases, contravening the Prevention of Bribery Ordinance and the Competition Ordinance.
The Post has learned that Smart Goal Construction Engineering is one of the firms involved.
According to its website, the company was established in Hong Kong in 1995 and registered with the Buildings Department as a “general building contractor” in 2001.
The website said the total value of the bidding price for projects undertaken and currently in progress exceeded HK$300 million.
The agencies said that during the course of the operation, certain individuals had refused to provide relevant information. The commission will follow up on the obstruction of its investigative powers, which is a crime under the Competition Ordinance.
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The antitrust watchdog said it had exercised its investigative powers during the operation. Other than searching premises with court warrants, relevant parties were required to submit documents and information, but some individuals had refused to provide requested details.
The operation involved renovation projects at two residential estates and mixed-use buildings on Hong Kong Island, as well as four residential estates and industrial buildings in the New Territories.
Individual contracts were worth between several million and tens of millions of Hong Kong dollars, for a total of about HK$180 million (US$22.98 million).
Spokesmen for the agencies said bribe payments for individual projects amounted to more than HK$1 million.
Half of the renovation projects were yet to be awarded, while work for the remaining projects launched before the investigation began.
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The investigators said they believed the syndicate had been taken out of action, but further enforcement action was possible as the inquiry continued.
The investigations arose from a corruption complaint lodged with the ICAC by members of the public.
The ICAC called on property owners and the public to report suspected corruption to its hotline at 2526 6366.
