ICAC arrests seven over alleged bid-rigging in Mong Kok building works

The Independent Commission Against Corruption has arrested seven people suspected of concealing identities and conflicts of interest in a bid to secure a major building maintenance contract in Mong Kok.

The arrests were made during an operation last Monday and Tuesday targeting an alleged corruption syndicate involved in large-scale maintenance projects for single-block buildings. 

Those detained include five men and two women aged between 37 and 75, among them the chairman of an incorporated owners body, a project contractor, directors of a consultancy firm, and a registered inspector.

Officers searched multiple locations, including offices of the consultancy firm and contractor as well as the homes of those arrested, seizing documents related to maintenance works and accounting records. Investigations are ongoing and further enforcement action has not been ruled out.

The probe stemmed from a public complaint alleging irregularities in the tender process for a maintenance project at a composite building in Mong Kok.

Investigators found the contractor’s proprietor allegedly controlled the consultancy firm through associates, secured the consultancy contract at a low price, and concealed his dual role and conflict of interest during the tender process in a bid to influence the selection outcome.

The consultancy firm is suspected of failing to declare its relationship with the contractor as required, while the chairman of the incorporated owners is believed to have condoned the concealment, possibly involving corrupt conduct. The contractor ultimately failed to secure the contract, valued at about HK$20 million, after some property owners raised concerns over the process.

The ICAC also found that a registered inspector among those arrested, who works full-time in the finance sector, may not have properly carried out inspection duties under the Buildings Ordinance when signing building inspection reports. Relevant information has been referred to the Buildings Department for follow-up.

Further enquiries revealed the same consultancy firm and contractor allegedly attempted to conceal their relationship in two other maintenance projects in Tai Hang and Sham Shui Po, with a combined value of about HK$6 million. The ICAC said it had intercepted the suspected activities and alerted property owners to corruption risks in contract awards.
 

 

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