Hong Kong task force smashes bid-rigging ring, 28 arrested
A joint task force dismantled a bid-rigging syndicate involved in building maintenance contracts, arresting 28 people including directors and staff of contractors, consultants and property management firms. Security chief warns more operations to come.
A joint task force set up to combat bid-rigging in building maintenance contracts has smashed a syndicate and arrested 28 people, including directors and staff of contractors, consultancy firms and property management companies. Security Minister Tang Siu-keun said the operation demonstrated the importance of cross-departmental co-operation and warned that the task force's actions would continue.
According to the Independent Commission Against Corruption (ICAC), syndicate members allegedly used bribery to help contractors win contracts. The ICAC suspects that contractors bribed consultancy firms, property management companies and owners' corporation members to influence the awarding of building maintenance contracts. The affected buildings are located across Central and Western District, Yau Tsim Mong and Sham Shui Po.
Deputy Police Commissioner Yip Wan-lung said investigations revealed that some syndicate members have triad links and used proceeds from bid-rigging and corruption to fund other illegal activities. On the same day, police raided more than 40 premises and arrested 38 people on suspicion of operating illegal gambling dens and managing prostitution venues.
Competition Commission Chief Executive John Bissell said the syndicate not only arranged for its own contractors to rig bids but also co-opted contractors outside the group by providing so-called 'homework' price instructions, which constituted bid-rigging, price-fixing and sharing of sensitive information. He added that the syndicate had tried to recruit more consultancy firms into the scheme but failed because those firms were already helping other syndicates rig bids. This suggests cross-collusion between different bid-rigging groups, and the commission may widen its investigation.