Hong Kong fire report shows how a lowball consultant bid opened the door to alleged tender rigging

Reuters went through the independent committee's report, made public on Oct. 29, and counted more than 40 mentions of triads, Hong Kong's organized crime groups. The renovation of the government-subsidized estate in Tai Po grew from a first estimate of HK$152 million to more than HK$330 million. The report does not say whether either firm has triad links.

In the report's account, the alleged scheme began with control of the consultant, the firm owners hire to help choose a contractor. Will Power Architects took that role for HK$220,000 ($28,000), well under the roughly HK$500,000 such work usually costs. Its tender assessments then scored main contractor Prestige Construction at full marks for safety compliance, though Prestige had prior convictions. The committee also found that Will Power never supervised Prestige independently and signed off on flammable foam boards and scaffolding nets that were not fire retardant, according to a Reuters summary of the findings.

Authorities have filed at least 25 criminal charges tied to Wang Fuk Court, naming Prestige, Will Power and seven people. The charges are unproven, and Reuters could not reach either company. The government plans a new criminal offense for rigging renovation tenders, carrying up to 10 years in jail and fines of up to HK$10 million ($1.3 million). It also wants a joint task force of the Independent Commission Against Corruption, the Competition Commission and police, plus a new bureau to oversee renovation work.

Lawyers and police officers told Reuters the new offense will only work if investigators can collect hard evidence, because collusion often leaves no payments or paper trail. Wake Forest University associate professor Tommy Leung said his own research found renovation prices climbed roughly 40% once Hong Kong began subsidizing mandatory repairs of buildings older than 30 years in 2012.