Hong Kong arrests 28 in triad-linked bid-rigging of building repair contracts worth about HK$100 million

It was the first operation by the joint task force on building-maintenance bid-rigging that the government formed after the Wang Fuk Court fire in Tai Po, which killed 168 people, the South China Morning Post reported. Security Secretary Chris Tang announced the arrests with officials from the police, the ICAC and the Competition Commission. Investigators allege the group, some of whose members are thought to have triad ties, also used intimidation and blackmail.

Those detained include seven directors of six contractors, six contractor employees, 10 directors and two staff members of consulting firms, a director and an employee from a property management firm, and an owners' corporation member, Dimsum Daily reported. The ICAC made 20 of the 28 arrests. The suspected offences range from fraud and forgery to conspiracy to defraud and conspiracies involving advantages offered to or accepted by agents. No one has been convicted. Police also shut seven gambling and vice premises allegedly controlled by some of the suspects and detained 38 more people there.

Tang said the group picked older blocks with many elderly residents, where owners had little technical knowledge of repair tenders. Contractors and consultants allegedly arranged sham bids, while triad-linked members worked their way in among owners and managers to steer awards. Officers raided over 50 places and took away bank records and company accounts. The buildings sit in five districts: Tuen Mun, Kwai Tsing, Sham Shui Po, Yau Tsim Mong, and Central and Western.

Five more contracts worth HK$90 million were stopped before work began, officials said. The task force has set up a 24-hour hotline for tips about suspected bid-rigging and may pay rewards in some cases, according to the SCMP.