ICAC arrests 22 in building repair graft probe, blocks $100m contracts

The Independent Commission Against Corruption has arrested 22 people in a territory-wide crackdown on suspected corruption linked to large-scale building renovation projects, successfully blocking the award of contracts worth more than HK$100 million.

The enforcement action, codenamed “Lion Rock,” was carried out on February 9 and 10 and targeted grand renovation projects at seven housing estates and buildings across Hong Kong. Those arrested — 17 men and five women aged between 36 and 78 — include directors and staff members of four project consultancy firms and three contractors, as well as chairpersons of incorporated owners (IO) of some of the estates and buildings concerned.

According to the ICAC, officers executed court warrants to search multiple locations, including the offices of the consultancy firms and contractors involved. Investigators seized tender and works documents related to the renovation projects, along with banking and accounting records.

The case involves major repair works at three housing estates, three standalone residential buildings and one industrial building located in Tsuen Wan, Sham Shui Po, Tai Kok Tsui, San Po Kong, Kwun Tong, Sheung Wan and Shau Kei Wan. Individual contracts ranged from HK$2 million to over HK$100 million, with the total value exceeding HK$200 million.

Two projects, together worth more than HK$100 million, were still in the preparatory stage at the time of the operation. The ICAC said its action prevented the award of those contracts.

The investigation stemmed from a corruption complaint alleging that certain contractors had offered bribes to consultancy firms and IO members to secure renovation contracts.

The ICAC said its inquiries revealed that some consultancy firms and contractors had allegedly fabricated accounting records to conceal dubious income and expenditure. Investigators also found that one IO chairperson had allegedly divulged confidential tender interview questions at the request of a consultancy firm to help it secure a consultancy contract.

The corruption investigation is ongoing, and the ICAC has not ruled out further enforcement action.

Following the operation, the anti-graft body said it had proactively contacted relevant stakeholders of the estates and buildings concerned, reminding them to stay alert to corruption risks when handling the affected projects.

The ICAC said it attaches great importance to corruption in building management and maintenance and adopts a three-pronged strategy of law enforcement, systemic prevention and community education to combat such offenses. It will continue to work closely with other government departments and organizations to tackle corruption and related illegal activities in building maintenance works.

The commission urged members of the public and industry practitioners to report any suspected corruption in building repair projects through its 24-hour hotline at 2526 6366.