Hong Kong task force smashes 66-person bid-rigging ring linked to triads
A joint task force arrested 66 people, including directors of construction and consultancy firms, for allegedly rigging building-repair tenders worth over HK$100 million. The group is said to have used bribery, intimidation and phantom bids, and had triad links.
A joint task force set up to tackle bid-rigging in building-repair works has smashed a syndicate suspected of colluding to fix tenders, arresting 66 people, officials said on 6 November.
The “Lian Fung” operation, which involved the Hong Kong police, the Competition Commission and other agencies, resulted in the arrest of 54 men and 12 women aged between 29 and 79. Among those detained were seven directors and six staff of six contractor companies, 10 directors and two staff of 10 consultancy firms, a director and a staff member of a property-management company, and a member of an owners’ corporation. Some of those arrested are alleged to have triad connections.
Investigations found that the syndicate, which the authorities say is linked to organised crime, had tried to rush through contracts before the government introduced a pre-qualification list for building-repair works. The group is accused of tricking owners into signing contracts by citing volatile material prices and the urgent need for repairs, and then steering the work to consultants and contractors it controlled.
The syndicate is alleged to have controlled the tender process by bribing owners’ corporation members, using front companies to submit “phantom” or “dummy” bids to create a false impression of competition, and intimidating or bribing rival bidders. After winning contracts, the group is said to have concealed the true scope of works and later added expensive extras, forcing owners to pay much higher sums. The total value of the contracts involved is said to exceed HK$100 million, covering 12 residential and factory estates across Hong Kong.
In the operation, the task force searched 78 premises, including offices of contractors and consultants, and seized documents and accounting records. In a parallel crackdown on triad activities, officers raided seven illegal venues, including five illegal gambling dens and two brothels, arresting another 38 people (30 men and eight women) on charges including operating gambling premises and managing brothels.
Most of those arrested remain in custody for questioning. The task force said it will contact owners’ corporations of buildings where the consultancy firms involved are still handling major repair contracts to warn them of the risks. It has also set up a 24-hour hotline, 182000, and a reward scheme for the public to report suspected bid-rigging activities.
The government warned that anyone found guilty of bid-rigging will be prosecuted and face the full force of the law.