Home / Crime and Justice / Cartel Rigged HK$700M Building Contracts: Regulator
Cartel Rigged HK$700M Building Contracts: Regulator
25 Mar
Summary
- Six companies and 12 individuals face proceedings over building maintenance contracts.
- Syndicate aimed to control 25% of the market through illegal methods.
- Investigation follows a deadly fire in November that killed 168 people.
Hong Kong's competition regulator initiated proceedings on Wednesday against a group accused of rigging building maintenance contracts totaling HK$700 million. These proceedings target six construction companies and 12 individuals. The investigation focuses on tenders for building maintenance at 11 housing developments across the city between April 2022 and September 2023.
The syndicate is alleged to have sought control over 25% of the building maintenance market. Their methods reportedly included bid-rigging, price-fixing, market-sharing, and exchanging sensitive information. This crackdown intensifies Hong Kong's efforts against corruption linked to such contracts, particularly after a fatal fire in November.
The fire, which occurred at the Wang Fuk Court housing complex in Tai Po, resulted in 168 deaths. An independent committee established by Hong Kong leader John Lee has begun hearings to recommend preventive measures following this tragedy.
