20 arrested over bribery and bid-rigging

Wallis Wang

Twenty people have been arrested for alleged corrupt and bid-rigging practices of building maintenance projects worth some HK$180 million.

The Competition Commission and the Independent Commission Against Corruption said in their first joint operation that the "newly rising syndicate" has been neutralized after the arrests of the group - including the alleged mastermind and core members - on Tuesday and Wednesday.

Seventeen men and three women, aged between 36 and 70, have been arrested, including project contractors, project consultants, middlemen, members of Incorporated Owners and members of property management companies.

The two agencies raided around 40 premises, including offices and residences, to collect evidence.

"Through bribery, they had allegedly manipulated the tendering exercises of building maintenance projects, exaggerated contract sums, assisted associated contractors to secure maintenance projects and consultancy contracts and manipulated project supervision and project payment release," ICAC said, adding they had allegedly violated the Prevention of Bribery Ordinance and the First Conduct Rule of the Competition Ordinance.

It added the case involved renovation projects of a residential estate and a residential-commercial composite building on Hong Kong Island, as well as four residential estates and industrial buildings in the New Territories.

"It is alleged that bribe payments for individual projects amounted to over HK$1 million," ICAC said.

It put the total value of the renovation projects at around HK$180 million.

Half of the renovation projects have yet to be awarded but the remaining projects had been launched before the watchdogs' investigation, the ICAC said.

The investigation arose from a corruption complaint from the public to the ICAC, while the competition watchdog also received intelligence alleging anti-competitive conduct in relation to various building maintenance projects.

The Competition Commission said it requested relevant parties to submit documents and information during the operation but was refused by some people, adding it will follow up on the obstruction.

The watchdogs believe the syndicate has been neutralized. They said they may carry out further law enforcement actions.

They added the joint operation "demonstrated the determination of the two agencies in cracking down on corruption and potential anti-competitive activities in building maintenance."

wallis.wang@singtaonewscorp.com