The Legislative Council has passed a non-binding motion calling for stronger action against bid-rigging in building repairs. Moved by lawmaker Christine Fong on November 4, the motion backed making the practice a criminal offence; the vote itself does not change the law.
Fong argued that the Competition Ordinance prohibits bid-rigging but relies on civil enforcement, which she said lacks criminal accountability and deterrent force. She also relayed owners’ reports of suspected forged signatures on authorisation forms at owners’ meetings.
A Joint Task Force involving police, the ICAC and the competition regulator is to tackle bid-rigging through intelligence-sharing, joint operations and prevention. Commercial Radio reported it had been newly established; Ming Pao said the agencies planned to form it.
The Commerce and Economic Development Secretary said the government proposed making four serious anti-competitive practices in engineering tenders or bids criminal offences: bid-rigging, price-fixing, market-sharing and restrictions on output. The proposed maximum penalty on conviction is 10 years’ imprisonment and a HK$10 million fine. The government also plans to strengthen civil enforcement, using criminal and civil action according to the circumstances of each case.
Lawmakers also proposed digital identity checks for owners and electronic authorisation or voting. Fong suggested using a personal digital identity platform to verify owners. She also proposed anonymous electronic tendering and a system to flag bids with unusually high or low prices, or repeated errors.
The planned Building Maintenance Support and Services Council is intended to help owners and owners’ corporations with repair work. A Development Bureau under secretary warned that a full government-run arrangement could undermine owners’ responsibility for their properties, affect market competition and leave the resulting workload and financial risks difficult to bear.
The government is studying electronic proxy appointments and the feasibility of online owners’ meetings and voting. The Commerce and Economic Development Secretary cited legal and technical questions, including the statutory threshold for in-person attendance, how to ensure votes are genuine, and arrangements for non-local owners and properties held in company names. The government also says it must account for owners’ differing ability to use technology.