Hong Kong’s competition watchdog has cracked down on a new syndicate suspected of bid-rigging in tenders for building maintenance projects across 17 estates and buildings, with the total value of contracts hitting HK$700 million (US$89.7 million).
The two-day operation is the first major enforcement action led by the Competition Commission following the deadly Tai Po blaze last November, which renewed scrutiny over the years-long malpractice in the city’s construction sector.
Codenamed “Hunter”, the watchdog’s raid on Wednesday and Thursday targeted 27 premises, including the offices of 14 companies comprising project contractors and a consultancy firm, as well as residences.
The total value of the relevant contracts was estimated to be about HK$700 million, the commission said.
It said on Thursday that its investigation revealed that the alleged mastermind of the syndicate was a project contractor suspected of coordinating with a consultancy firm and other contractors to manipulate tender results through various deceptive means.
“During the tendering of some of the targeted renovation projects, the mastermind of the syndicate managed to obtain the estimation of the project cost, which was supposed to be confidential, from the consultancy firm,” the statement read.
