Last week (April 27 and 28), the Independent Commission Against Corruption (ICAC) launched an enforcement operation targeting a corruption ring specializing in major renovation projects for single-building complexes. Five men and two women, aged between 37 and 75, were arrested. Among them were chairman of the management committee of the incorporated owners, proprietor of engineering contractor, as well as a director of an engineering consultancy firm and a registered inspector hired by the firm.
The ICAC previously received a report from a member of the public alleging that the tendering process for major renovation works at a mixed-use commercial and residential building in Mong Kok may have involved corruption. The ICAC investigation revealed that the arrested contractor proprietor is suspected of secretly holding a stake in the engineering consultancy firm involved through relatives and friends, securing the engineering consultancy contract at a low price, and concealing his dual roles as both contractor and engineering consultant—as well as the resulting conflict of interest—during the tender process, with the intent of inducing the owners' corporation to select his contractor for the major renovation project.
An ICAC investigation revealed that the engineering consultancy firm failed to disclose a conflict of interest with the contractor, as required by the owners' corporation. The chairman of the management committee of the incorporated owners is suspected of condoning and shielding the contractor, which may constitute corruption. Due to doubts raised by some owners regarding the tender process, the contractor in question ultimately failed to secure the project contract, valued at approximately HK$20 million.
The ICAC investigation also revealed that the arrested registered inspector works full-time in the financial sector. Authorities suspect that she signed building inspection reports without fulfilling her inspection duties under the Buildings Ordinance regarding the relevant projects. The ICAC has simultaneously referred the relevant building inspection records to the Buildings Department for follow-up.
During the operation, ICAC officers searched multiple locations, including the offices of the engineering consultancy and the contractor involved in the case, as well as the residences of those arrested, and seized relevant building maintenance project documents and accounting records.
During the operation, the ICAC discovered that the engineering consultancy firm and contractor involved in the case had also attempted to secure two other major building maintenance projects in Tai Hang and Sham Shui Po by concealing their relationship and conflicts of interest. Tenders for these projects are currently underway, with a combined contract value of approximately HK$6 million. The related corruption investigation is ongoing, and the ICAC does not rule out further enforcement actions.
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