HK antitrust watchdog probes 25 building maintenance projects worth $600m over bid-rigging allegations

Hong Kong's Competition Commission has launched a major enforcement operation targeting two alleged bid-rigging syndicates involved in building maintenance projects worth over HK$600 million.

The two-day operation, which began yesterday, saw investigators raid 19 premises including contractors' offices and residences of individuals connected to the case.

The investigation centers on 25 building maintenance projects spanning 10 districts across Hong Kong, Kowloon and the New Territories. The projects include 23 residential estates and buildings, along with two industrial buildings.

According to the Commission, some of the renovation contracts have not yet been awarded, while work on other projects has either commenced or been completed prior to the investigation.

The Competition Commission revealed that the two syndicates under investigation have been operating for some time with sizable and cohesive organizational structures.

The groups comprise numerous project contractors and other related parties who allegedly manipulated tender results through coordinated bidding practices. The scheme involved what is locally known as "pig quotes" - where contractors either directly or through intermediaries exchanged and coordinated bidding prices, with some submitting deliberately higher-priced bids to ensure a predetermined winner would secure the contract.

This conduct allegedly amounts to bid-rigging, price-fixing and the exchange of competitively sensitive information, constituting violations of the First Conduct Rule of the Competition Ordinance.

The Commission has been reaching out to relevant stakeholders of the affected buildings as the investigation continues.

(Marco Lam)