A joint operation by the Independent Commission Against Corruption (ICAC), police, and the Competition Commission has arrested 50 individuals and dismantled a building maintenance bid-rigging syndicate involving HK$500 million across 27 projects.
The enforcement action followed complaints over an engineering contractor allegedly securing multiple major maintenance contracts through bribery.
An in-depth investigation identified three projects in Eastern District, Wan Chai, and Yau Tsim Mong, which involved commercial and residential buildings worth an estimated HK$200 million.
In a coordinated crackdown on August 26 and 27, authorities conducted searches across 39 premises, including the offices of engineering contractors and consultancy firms, as well as residential addresses of those involved. Documents and banking records were seized, and triad-controlled venues were raided.
It is understood that the operation has also successfully blocked contracts that had not yet been awarded.
During the operation, the ICAC arrested eight men and two women, aged 39 to 77, including the contractor, engineering consultants, registered inspectors and owners' corporation chairpersons and members, with some having triad backgrounds.
The contractor, who is believed to be the syndicate leader, is suspected of bribing engineering consultants and members of owners' corporations to secure the three contracts.
Tactics reportedly included concealing conviction records in tender evaluation reports, and separating major maintenance projects into smaller packages to bypass owner approval procedures.
The ICAC also suspects that registered inspectors failed to perform their duties, and has referred the matter to the Buildings Department.
Additionally, the department seized cash totalling over HK$1.2 million from the premises of an engineering consultant, which was believed to be part of the bribe.
Competition Commission uncovers bid-rigging network across 23 projects
Meanwhile, the Competition Commission has launched investigations into 23 estates and buildings maintenance projects across eight districts, spanning Hong Kong Island, Kowloon, and the New Territories, with an estimated total contract value of about HK$300 million.
Some tenders were cancelled before the commission stepped in, while others had already begun or been completed. The commission is now contacting stakeholders of the buildings involved.
The enforcement action stemmed from a search last August into a private estate maintenance project in Kowloon City, where evidence suggested the syndicate engaged in anti-competitive practices during multiple tenders, including issuing and disseminating price guidance—commonly referred to as "homework"—to rig bidding outcomes.
The syndicate also allegedly coordinated with other bid-rigging groups through intermediaries to arrange their own contractors to participate, boosting their chances of winning contracts.
Separate police actions
Concurrently, police also raided multiple venues in Kowloon allegedly controlled by individuals with triad backgrounds on August 26, shutting down three illegal fishing game gambling dens.
During the operation, 37 individuals, including 25 men and 12 women, aged 24 to 62, were arrested for offenses including operating gambling establishments and gambling in any place not being a gambling establishment.
In a separate enforcement action, police arrested three local men, aged 40 to 69, in connection with a conspiracy to use false documents involving building maintenance works.
The arrestees included a construction company director, a structural engineer, and a contractor director, who allegedly submitted 13 forged certificates of works completion to the Buildings Department between July and August 2022 for small projects on 13 residential units in a Hong Kong Island estate.
The authorities reaffirmed their commitment to maintain close cooperation in combating corruption, bid-rigging, triad activities, and other illegal acts related to building maintenance works.
They stated that efforts to strengthen publicity and education will be continued to provide guidance and support to stakeholders to prevent corruption, anti-competitive practice, and other illegal activities in building maintenance projects.
The authorities urged the public to actively participate in building management affairs and report any illegal activities to law enforcement agencies.
Stakeholders are also encouraged to refer to anti-corruption and police guidance on building maintenance. For procurement processes involving large amounts, owners are advised to include the Competition Commission's enhanced "non-collusion clause" to strengthen civil and criminal liability of those in breach.
