Hong Kong’s competition watchdog aims to submit proposals to criminalise bid-rigging as early as September, paving the way for the government to table legislative amendments by the end of the year, following the city’s deadliest fire in decades.
Senior Counsel Jat Sew-tong, who assumed the role of chairman of the Competition Commission last month, said on Friday that the watchdog would also launch a study into the city’s auto fuel market amid a surge in prices. The sector has faced long-standing allegations of price-fixing.
In a report submitted to the independent committee investigating last November’s fire at Wang Fuk Court in Tai Po, which killed 168 people and displaced 5,000 residents, the commission endorsed the criminalisation of bid-rigging.
The recommendation follows alleged malpractice uncovered in the HK$336 million (US$43 million) maintenance project that was under way at Wang Fuk Court when the estate went up in flames, with at least two bid-rigging syndicates linked to the tender.
The commission said it was considering a “dual-track” legal framework, comprising both civil and criminal regimes, an approach adopted by other jurisdictions and supported by the Bar Association.
During his first media briefing as chairman, Jat said the commission had been working closely with the government and the Bar Association to review the Competition Ordinance and devise measures to combat bid-rigging, including criminalisation and higher civil penalties.
