Competition watchdog widens building repair bid-rigging probe
Crhk · 4 SOURCESabout 2 hours ago2 MIN
Summary
Hong Kong’s Competition Commission has carried out a second round of enforcement action in an alleged bid-rigging case tied to building maintenance works, after reviewing evidence seized in an earlier operation in January. The case covers repair projects at 28 housing estates and buildings in 12 districts across Hong Kong, with contracts preliminarily estimated at about HK$500 million.
Key Points
- Acting under court warrants, the Commission searched 12 premises on August 12, including the offices of four contractors and the homes of people linked to the case.
- Investigators said suspicious phone messages found in the first operation suggested another hidden bid-rigging group may have tried to target a housing estate repair tender.
- A contractor not previously under investigation allegedly used an intermediary to recruit other contractors to submit cover bids during the tender process.
- The same contractor is also suspected of distributing bid-price instructions, known in the trade as “homework”, to influence tender outcomes across multiple projects.
- The alleged conduct may amount to bid-rigging, market sharing, price-fixing and exchanging sensitive information, potentially breaching the First Conduct Rule under the Competition Ordinance.
Why It Matters
Some of the contracts have not yet been awarded, while others had already started or been completed before the investigation began, meaning the case could affect both pending procurement and scrutiny of past works. The Commission said it has been contacting stakeholders of the buildings involved, coordinating closely with other enforcement agencies, and using compulsory powers to demand documents and testimony as the investigation continues.