The fire highlighted abuse in Hong Kong’s building renovation industry, a billion-dollar sector long plagued by allegations of corruption. - China Daily/ANN
HONG KONG: Hong Kong authorities searched 27 premises on Jan 28 and 29 as part of an investigation into bid-rigging on building maintenance projects, two months after a fire in a residential estate killed 168 people.
The Competition Commission said the search included the offices of 14 companies and residences of individuals suspected of rigging the tendering for projects at 17 housing estates and buildings. The total value of the projects is about HK$700 million (US$90 million), it said in a statement.
The bid-rigging syndicate was uncovered after analysing evidence from four previous search operations, including two alongside the Independent Commission Against Corruption, the Competition Commission said.
This week’s search operation, codenamed "Hunter,” comes after a devastating fire in November ripped through Wang Fuk Court, an estate in Hong Kong’s New Territories. The tragedy highlighted abuse in the city’s building renovation industry, a billion-dollar sector long plagued by allegations of corruption.
The bid-rigging syndicate was masterminded by a project contractor, and its members included other contractors and a consultancy firm, according to Thursday’s statement. The Competition Commission didn’t disclose any names.
The mastermind obtained confidential project cost estimates from the consultancy firm and then coordinated with other contractors, which submitted artificially high "pig quotes” to create a false impression of competition, the commission said.
The operation over the past two days involved building maintenance projects at 13 residential estates and buildings, four industrial and commercial buildings spanning nine districts.
Hong Kong’s government set up an independent committee to investigate the November fire and pledged to collaborate with professional organizations, such as the Hong Kong Institute of Surveyors, to provide advice to homeowners on how to maintain buildings, hire accredited inspectors and protect their rights. - Bloomberg
