Fifty people have been arrested in a joint operation against a syndicate alleged to be engaged in bribery and bid-rigging for major building maintenance and renovation projects.

The arrests, which took in the suspected mastermind and core members of the syndicate, were in relation to 27 projects at housing estates and buildings.

They are estimated to be worth approximately HK$500 million in total.

In the joint operation by the Competition Commission, the Independent Commission Against Corruption and the police on August 26 and 27, project documents and accounting records were also seized in raids on 39 premises, which included the offices of project contractors and consultants.

Illegal gambling premises, alleged to be controlled by people with triad backgrounds who were among those nabbed, were also raided. These raids resulted in the arrests of 25 men and 12 women aged between 24 and 62.

The operation came following separate investigations carried out by the Competition Commission and the ICAC.

The Competition Commission alleged that the syndicate was suspected of engaging in anti-competitive practices, including bid-rigging, market-sharing, price fixing and exchange of competitively sensitive information during tendering for multiple projects.

The syndicate is alleged to have offered pricing instructions as well as worked with another bid-rigging syndicate to increase its chance of winning tenders, the watchdog said.

The ICAC, meanwhile, launched the probe after receiving complaints that a contractor is believed to have obtained multiple contracts through corruption and bribery.

The anti-graft agency alleged that the contractor, who is said to be the mastermind of the syndicate, bribed project consultants and some members of owners' corporations to secure contracts.

The contractor had allegedly concealed the company's conviction records to win the bid as well as split up major renovation project into smaller parcels so as to circumvent procedures that require homeowners’ approval.

The ICAC also suspects that some registered inspectors had failed to carry out their duties and has referred the case to the Buildings Department for follow-up action.

Three of the suspects were arrested by the police for alleged conspiracy to use false instruments.

They are suspected to have submitted 13 forged work-completion certificates to the Buildings Department that a registered inspector was said to have signed on to after the inspector had died.


Edited by Edmond Fong