The government plans to make four serious anti-competitive practices in building-maintenance tenders criminal offences: bid-rigging, price-fixing, market allocation and restrictions on output. The proposed changes are not yet law.
The announcement followed an independent committee report submitted to the Chief Executive nearly a year after a five-alarm fire at a Hong Kong housing estate. The committee described bid-rigging in large building-maintenance projects as a serious problem in Hong Kong.
The proposed maximum penalties include up to 10 years in prison and one of three fine measures: up to HK$10 million, three times the illegal commercial gain, or 50 per cent of local turnover for each year of the offence period. The chief executive of the Competition Commission said the 10-year term was a proposed maximum and that courts would decide sentences.
A new joint task force, coordinated by Security Bureau Secretary Chris Tang, is intended to investigate proactively instead of relying only on complaints. Tang said it would share intelligence earlier and coordinate action, using existing staff. Possible methods he described included attending owners’ corporation meetings, using informants and undercover work.
The proposed legal changes would also bring the new offences within the law covering organised and serious crimes, allowing assets to be frozen and penalties increased. Related amendments to laws governing the Independent Commission Against Corruption and communications surveillance are intended to strengthen investigative powers.
The government aims to pass the amendments next April. The proposed offences would not apply retrospectively.