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Watchdog takes legal action against 6 contractors, 12 people after renovations probe

· English· 南华早报
Watchdog takes legal action against 6 contractors, 12 people after renovations probe

Hoi Tao Building in Kennedy Town was among three renovation projects in which bribes were allegedly offered to flat owners.

Photo: Google Maps Hong Kong’s competition watchdog has taken legal action against six contractors and 12 individuals over alleged corruption and anti-competitive conduct in building maintenance projects worth nearly HK$700 million, after the city’s graft-buster charged five people linked to the work.

The Competition Commission said on Wednesday that it had commenced litigation proceedings in the Competition Tribunal after an investigation into a bid-rigging syndicate involved in tendering for projects in at least 11 housing estates and buildings between April 2022 and September 2023.

A referral from the Independent Commission Against Corruption (ICAC) in January 2024 prompted the investigation.

The ICAC also revealed on Wednesday that it had charged five people over alleged bribes – including casino chips and red packets – offered to flat owners and owners’ corporation members during large-scale renovation projects worth about HK$90 million at three estates.

Competition Commission CEO Rasul Butt said: “Internal communications of the syndicate obtained during our search operations reveal their ambition to corner a quarter of Hong Kong’s building maintenance market through illicit means – clearly reflecting their high degree of scheming and greed. “I must emphasise that this is just the beginning.

The commission will continue to pursue different bid-rigging syndicates with more proceedings to follow.” He said the syndicate had been “very active” in the past few years.

Among the 11 estates and projects investigated by the Competition Commission was Wang Fuk Court in Tai Po, where a massive fire killed 168 people last November.

The ICAC charged two of the 12 over alleged bribes.

Some of the 12 were referred to police for criminal investigation.

The ICAC charged five people over alleged bribes offered to flat owners during large projects.

Photo: Jelly Tse The ICAC disclosed further details of its crackdown on a crime syndicate accused of “manipulating tendering exercises” for building maintenance projects through bribery and bid-rigging.

The arrests followed a joint operation with the Competition Commission, code-named “Shotgun”.

The charges followed a separate operation into renovation projects that led to the arrest of 22 people in February.

The ICAC raided companies linked to dubious renovation dealings at seven buildings

原文链接: 南华早报

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