Housing Authority Faces Backlash Over Lowest-Bid Lift Contractor at Tai Po Estate
HK01 · 2 SOURCES1 day ago7 MIN
Summary
The Housing Authority (房委會) is facing strong opposition from residents at Fu Heng Estate (富亨邨) in Tai Po after a controversial vote approved Tai Japan Elevator Company (臺日電梯) as the lift replacement contractor despite concerns about the company's qualifications and the manner of approval. The contract, valued at HK$30.24 million, was selected through a special owners' meeting in September where the Housing Authority used its substantial property share holdings to secure passage of the motion, raising questions about fairness for other owners. Residents have since demanded answers and the Housing Authority has now recommended suspending the contract.
Key Points
- Fu Heng Estate is participating in the Urban Renewal Authority's Optimized Lift Subsidy Scheme, with the Housing Authority appointing Hong Kong Quality Assurance Association as project consultant
- Eight contractors submitted bids for the lift replacement project; Tai Japan's HK$30.24 million bid was the lowest, and its monthly maintenance fee also the cheapest among all bidders
- Tai Japan's service quality rating was three out of five stars, and it received one progress delay warning letter from the resident consultant within the past 12 months
- The existing contractor, Tysen Elevator Hong Kong, submitted a HK$32.928 million bid (fourth lowest) but was also flagged for abnormally low unit pricing by the consultant
- At the September special owners' meeting, Tai Japan was approved with 62.39% support representing 71,570 property shares, notably higher than a previous agenda item that passed with 80% but only 38,123 property shares
- The large property share holder vote in favor of Tai Japan was confirmed by the owners' corporation's legal adviser to be the Housing Authority representative
- Residents criticized the Housing Authority's voting approach, with one owner stating that other residents' votes became meaningless, and some arriving late were unable to enter the venue to vote
- Residents have written to the Housing Department to complain and request a re-selection of contractors; multiple owners expressed preference for suspending the contract over proceeding with Tai Japan
Why It Matters
This case exposes potential conflicts of interest when government-affiliated entities hold significant voting power in private residential management decisions, as their votes can override majority owner sentiment on critical safety infrastructure projects. The controversy highlights broader concerns about lift safety in Hong Kong's aging housing stock, particularly following recent incidents like the Hung Fuk Estate fire, and may prompt scrutiny of the vetting processes for government-subsidized improvement schemes .
This case exposes potential conflicts of interest when government-affiliated entities hold significant voting power in private residential management decisions, as their votes can override majority owner sentiment on critical safety infrastructure projects. The controversy highlights broader concerns about lift safety in Hong Kong's aging housing stock, particularly following recent incidents like the Hung Fuk Estate fire, and may prompt scrutiny of the vetting processes for government-subsidized improvement schemes .