Twenty-eight people were arrested in connection with alleged manipulation of 12 building and estate repair contracts across Hong Kong, in the first joint operation by a government task force targeting bid-rigging. The arrests were made over the two days before the operation was announced on November 6.
The Joint Task Force to Combat Bid-rigging in Building Maintenance and Renovation Projects brings together the Hong Kong Police Force, the Independent Commission Against Corruption and the Competition Commission. It was set up following recommendations from the independent committee formed after the fire at Wang Fuk Court in Tai Po.
The people arrested included directors and employees of contracting, consultancy and property-management companies, as well as a member of an owners’ corporation. The Security Bureau chief said the group had tried to steer owners towards its consultants and contractors by citing volatile material prices and claiming work had to begin urgently, before government measures against bid-rigging took effect.
He alleged that the group focused on older buildings with more elderly residents and bought flats through companies to gain access to owners’ corporations. He said it used “ghost bids”, forged documents, intimidation and bribery to manipulate results.
The Competition Commission searched residences under court warrants and used powers under the Competition Ordinance to require people to provide documents and attend hearings.