Competition Authority Expands Building Repair Bid-Rigging Probe to 28 Projects Worth HK$500M
HK01 · 3 SOURCESabout 2 hours ago2 MIN
Summary
The Competition Commission carried out a second wave of enforcement action on February 12, deepening its investigation into a major building maintenance bid-rigging conspiracy. The operation, codenamed "Hunter," targeted 12 locations including four contractor offices and private residences, revealing a scheme involving 28 building maintenance projects across Hong Kong with a combined estimated contract value of approximately HK$500 million. The investigation builds on evidence seized during a first round of raids on January 28-29, which uncovered a suspected hidden bid-rigging network attempting to manipulate a building's maintenance tender.
Key Points
- The February 12 raids marked the second phase of Operation Hunter, following the initial January 28-29 action that searched 27 locations including 14 contractor offices
- The expanded probe now covers 28 residential buildings and estates across 12 districts in Hong Kong, Kowloon, and the New Territories, with contracts valued at approximately HK$500 million
- Evidence from the first operation revealed a suspicious phone conversation indicating another hidden bid-rigging group sought to influence a building's maintenance tender through intermediaries
- The alleged conduct included distributing price instructions ("homework") to other contractors to manipulate tender results, constituting bid-rigging, market allocation, price-fixing, and sharing sensitive information
- The suspected violations contravene the First Conduct Rule under the Competition Ordinance, with some contracts not yet awarded and others already underway or completed
- The Competition Commission exercised statutory powers to compel document production and witness attendance, while maintaining liaison with other law enforcement agencies
Why It Matters
This case demonstrates the Competition Commission's continued commitment to cracking down on bid-rigging in Hong Kong's building maintenance sector, an area notorious for exploitative practices targeting elderly and unsuspecting property owners. With HK$500 million in contracts under scrutiny, successful prosecution could set a significant precedent and restore confidence in fair competition for building management companies and residents alike .
This case demonstrates the Competition Commission's continued commitment to cracking down on bid-rigging in Hong Kong's building maintenance sector, an area notorious for exploitative practices targeting elderly and unsuspecting property owners. With HK$500 million in contracts under scrutiny, successful prosecution could set a significant precedent and restore confidence in fair competition for building management companies and residents alike .