Authorities in Hong Kong have arrested 50 individuals as part of a coordinated investigation into bid-rigging activities involving approximately HK$500 million in contracts for repair and maintenance work across 27 housing estates and buildings. The operation, conducted jointly by the Independent Commission Against Corruption (ICAC), the police, and the Competition Commission, targeted a syndicate believed to have manipulated tendering processes and involved some individuals with alleged triad connections.
The investigation began following public complaints about irregularities related to maintenance projects. The ICAC said the inquiry initially focused on a contractor responsible for major renovation contracts at three composite and private residential buildings located in the Eastern, Wan Chai, and Yau Tsim Mong districts, with contracts valued around HK$200 million. This contractor, identified as the alleged syndicate leader, is suspected of bribing project consultants and members of owners’ corporations to secure these contracts.
Authorities said the contractor employed various illicit methods, including concealing prior company convictions in tender analysis reports and dividing large renovation projects into smaller tasks to avoid approval requirements from owners. Registered inspectors involved in the projects are also suspected of negligence or misconduct, prompting the ICAC to refer related matters to the Buildings Department for further action.
Among those arrested were eight men and two women between 39 and 77 years old, comprising the contractor, consultants, registered inspectors, and representatives from owners’ corporations. Law enforcement also confiscated over HK$1.2 million in cash from a project consultant’s premises, believed to be linked to bribe payments.
The Competition Commission’s portion of the inquiry centered on maintenance contracts across 23 estates in eight districts spanning Hong Kong Island, Kowloon, and the New Territories, with implicated contracts totaling around HK$300 million. The commission discovered that the syndicate disseminated pricing guidelines—often called “homework”—to coordinate bid amounts among members, effectively controlling tendering outcomes. The syndicate was also found to have cooperated with another bid-rigging group by using a middleman to submit contractors into each other’s bids to increase their likelihood of success. Some contracts were overturned due to the investigation, while others had already commenced or concluded.
During the operation carried out last Wednesday, police also targeted three illegal gambling venues allegedly run by triad-linked individuals, resulting in the arrest of 37 people, including 25 men and 12 women aged 24 to 62.
Separately, authorities detained three men—a construction company director, a structural engineer, and a contractor company director—on suspicion of submitting 13 forged completion certificates for minor works carried out at flats in a Hong Kong Island estate in 2022. Investigators allege that the signatures of a registered inspector, who had died, were fraudulently added to these documents.
The ICAC, police, and Competition Commission have urged the public to remain vigilant and actively report any suspected illegal activities related to building management and construction projects.