A Hong Kong Special Administrative Region government joint task force has smashed a bid-rigging syndicate exploiting building maintenance works, officials said on Friday. Twenty-eight people were arrested.
The syndicate, some of whose members were believed to be linked to triads, was involved in major renovations of several buildings, with the total value of the engineering contracts amounting to HK$100 million ($12.8 million).
The crackdown marks the first major achievement by the joint task force comprising members of the Police Force, the Independent Commission Against Corruption, and the Competition Commission.
The squad’s establishment is parts of the authorities’ reforms announced on Oct 29 to address the loopholes exposed by the deadly Wang Fuk Court fire last year, including bid-rigging in building maintenance and renovation works.
The syndicate allegedly secured 12 works contracts across various residential estates in Hong Kong through illicit means, including bid-rigging, bribery, document forgery, intimidation and blackmail.
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Those arrested comprise seven directors and six staff members from six contractors, 10 directors and two employees from 10 consultancy firms, a director and a staff member of a property management company, and one member of an owners’ corporation.
They were detained on suspicion of fraud, forgery, conspiracy to defraud, and conspiracy to offer and accept advantages to and by an agent.
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At a news conference, Secretary for Security Chris Tang Ping-keung said the syndicate targeted ageing buildings with mostly elderly residents. The group allegedly lured flat owners into signing contracts by citing fluctuating material costs and urgent need for repairs.
“The joint task force will eradicate you. Offenders will definitely face legal sanctions and pay a heavy price,” Tang warned.
Tang added that the task force had set up a 24-hour hotline at 182 000, alongside a reward program, for the public to report suspected bid-rigging in building maintenance. All information collected will be kept strictly confidential, he said.
Contact the writer at hazelwong@chinadailyhk.com
