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ICAC, antitrust watchdog arrest 5 in Hong Kong over construction fraud, bid-rigging

  • Independent Commission Against Corruption and Competition Commission detain suspects after 20 earlier arrests in April for similar offences

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At a press briefing, the ICAC and Competition Commission show an illustration explaining how the alleged construction bid-rigging worked. Photo: Jelly Tse

Hong Kong authorities have arrested five more people for alleged construction fraud and bid-rigging related to two building maintenance projects, after 20 were earlier detained over another six projects, with law enforcement officials saying all suspects belonged to the same syndicate.

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In a joint operation on August 21 and 22, the Independent Commission Against Corruption (ICAC) and the antitrust watchdog Competition Commission arrested five individuals on bribery-related charges tied to residential building maintenance projects totalling HK$140 million (US$18 million).

“After four months of in-depth investigation and analysis into evidence collected, we have uncovered the same syndicate’s involvement in alleged corruption and bid-rigging activities in other residential estates and maintenance projects,” Bill Ng Siu-kei, principal investigator of the ICAC, said.

Ng was referring to a similar joint operation by the two agencies in April, during which 20 suspects were arrested over fraud and bid-rigging in relation to the same type of projects.

The latest five arrestees comprised two members of incorporated owners’ committees, two middlemen and a contractor.

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Investigators searched some 20 premises with court warrants, including offices of multiple project contractors, consultancies and residences of the five arrested individuals. The ICAC also met 22 other individuals during the investigation.

Ng said the largest bribe uncovered in last week’s operation amounted to HK$1 million, and both projects were residential estates on Hong Kong Island.

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