Seven arrested by ICAC for alleged bribery for conniving at concealment of contractor’s dual role as consultant in grand maintenance projects

Last week (April 27 and 28), the ICAC conducted an enforcement action against a corruption syndicate specifically targeting grand maintenance projects of single-block buildings, arresting five men and two women, aged between 37 and 75, including the chairman of an Incorporated Owners (IO), the proprietor of a project contractor, and directors of a project consultancy firm and a registered inspector employed by the firm.

The ICAC received a public complaint alleging possible corruption in the tender exercise for the grand maintenance project of a single-block composite building in Mong Kok. Investigations revealed that the arrested project contractor’s proprietor allegedly controlled the project consultancy firm through his associates, secured the consultancy contract for the grand maintenance project at a low price, and concealed his dual roles as project contractor and consultant, along with his conflicting interests during the tendering process, with intent to induce the IO to select his company as the project contractor.

ICAC enquiries found that the project consultancy firm concerned did not declare its conflicting interests with the project contractor as required by the IO, while the IO chairman was suspected of bribery for conniving at the concealment. As property owners surmised irregularities in the tender exercise, the project contractor eventually failed to secure the $20 million works contract.

It was also revealed in the ICAC investigation that the arrested registered inspector, who maintained a full-time job in the finance industry, might not have discharged her inspection duties in accordance with the Buildings Ordinance when signing Building Inspection Reports. The ICAC has referred the relevant inspection information in parallel to the Buildings Department for follow-up action.

ICAC officers conducted searches at multiple locations, including the offices of the project consultancy firm and the project contractor, as well as residences of the arrestees, seizing relevant documents related to the grand maintenance projects and accounting records.

It was revealed in the ICAC operation that the project consultancy firm and project contractor also concealed their relationship and conflicting interests in two other grand maintenance projects currently undergoing tender exercises – one in Tai Hang and another in Sham Shui Po – to secure contracts with a total contract sum of about $6 million. The ICAC successfully intercepted these illicit activities and reminded property owners of potential corruption risks during contract awards.

As the relevant corruption investigation is ongoing, the ICAC does not rule out further enforcement actions.

The ICAC urges members of the public and practitioners in the building management and maintenance industry to report suspected corruption to the ICAC immediately through its 24-hour hotline at 25 266 366.