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Building Maintenance | Black Society Infiltration Consulting Firm ICAC and Police Arrest 42 People
The Independent Commission Against Corruption (ICAC) and the police took joint action last week to combat triad infiltration in building maintenance corruption, involving three projects in Hong Kong, Kowloon, and the New Territories, with a total contract amount exceeding HK$180 million. A total of 42 people were arrested, including the owner of an engineering consultancy, registered inspectors, and several intermediaries with triad backgrounds.
Suspected of manipulating the engineering bidding process through corruption
The ICAC stated that since mid-last year, it has received complaints from citizens indicating that an engineering consultancy was suspected of using corrupt bribery to assist contractors in obtaining building maintenance contracts at various housing estates. Through intelligence analysis and investigation, it was discovered that the consultancy was suspected of initially entering the market with unreasonably low prices to obtain consultancy contracts for building maintenance at different housing estates. It is suspected that they collaborated with affiliated triad members acting as intermediaries to manipulate the engineering bidding process through corrupt means, assisting contractors in securing large contracts at specific housing estates.
One project involves a New Territories public housing estate with a contract exceeding HK$160 million
One of the projects involves maintenance work for a public housing estate in the New Territories, with an estimated contract value exceeding HK$160 million. As the related bidding work is still in preparation, it is believed that the illicit activities have been early prevented. Additionally, there is a major maintenance project for a standalone residential building in the Hong Kong Island area, where the contractor secured the contract for HK$20 million, and the work has already commenced.
There is also a project for fire safety improvement work for a standalone residential building in the Kowloon area, with a contract value of HK$1.4 million, which has not yet been awarded.
The ICAC has proactively contacted stakeholders of the involved housing estates and buildings, reminding them to be aware of the corruption risks when following up on the related projects.