(To watch the full press conference with sign language interpretation, click here.)

The joint task force to combat bid-rigging in building maintenance and renovation projects conducted a joint operation yesterday and today, successfully neutralising a bid-rigging syndicate and arresting a total of 66 people.

Led by the Security Bureau and also involving the Police Force, the Independent Commission Against Corruption, and the Competition Commission (ICAC), the two-day operation mounted by the task force was codenamed “Operation UNITEDEDGE”.

In a press conference this afternoon, Secretary for Security Tang Ping-keung gave a detailed account of it.

“During the operation, we neutralised that syndicate, resulting in the arrests of 28 people together by Police and the ICAC, including six contractors, seven directors from those contractors and six staff members of those contractors; 10 consultancy companies, involving 10 directors and two staff members; one property management company, involving one director; and one owners’ corporation, involving one member of the owners’ corporation. Some of the arrested persons have triad backgrounds.”

He continued: “The offences that they have been involved in include fraud, making a false instrument, conspiracy to defraud, conspiracy to offer advantages to an agent, and conspiracy for an agent to accept advantage.”

“The syndicate was involved with at least 20 buildings or estates, including 12 which have already awarded contracts and eight that have yet to award contracts. The awarded sum is about $100 million, and the amount to be awarded is also about $100 million.”

The investigation found that a bid-rigging syndicate with links to triad groups had attempted to “catch the last train” before reforms were implemented.

They sought to exploit fluctuations in material prices and the urgent need to commence works as pretexts to induce property owners to sign contracts before the Government introduced the “pre-qualified lists” mechanism, thereby ensuring owners selected building works consultants and contractors controlled by the syndicate.

The Security Bureau said that in the operation, the task force searched a total of 78 premises, including the offices of various contractors and consultancy firms, and the residences of those involved in the case. Documents and accounting records of the relevant building maintenance and renovation projects were also seized.

To combat triad activities, the operation also raided seven illegal premises across various districts that were controlled by the individuals with triad backgrounds. These premises included five illegal gambling establishments and two vice establishments.

Another 38 people were arrested for offences including operating a gambling establishment, gambling in a gambling establishment, and keeping a vice establishment.

Most of the arrestees remain in custody and the task force will continue with its investigations, the bureau added.

Investigations also revealed that the syndicate secured tenders through controlling the consultancy firms and contractors, manipulating the decision-making of owners' corporations (OCs) by bribing their members, and circumventing regulations by using nominal registered inspectors and works consultants.

Based on the information currently available, the bid-rigging syndicate consisted primarily of six contractors and 10 consultancy firms. It is suspected of operating the relevant companies through different individuals to conceal the connections between them, thereby gaining control over building maintenance and renovation projects.

In addition, as the consultancy firms involved also provide consultancy services on building maintenance and renovation projects for several other buildings, and the relevant works contracts have yet to be awarded, the task force will approach the relevant OCs in due course to remind them of the risks they need to be aware in awarding contracts.

The task force will also share relevant information with other government departments to support the launch of the “pre-qualified lists”, and will continue to combat bid-rigging syndicates through intelligence sharing, joint operations and prevention.

The task force has set up a 24-hour hotline, 182 000, and a reward mechanism.

Members of the public can use the hotline to provide information or intelligence regarding suspected bid-rigging activities. Personal data obtained will be kept strictly confidential.

The Government gives a stern warning that no one should flout the law by engaging in bid-rigging. Offenders will be arrested and prosecuted, and upon conviction, punished in accordance with the law.