Five linked to three housing estates charged in ICAC’s ongoing crackdown on corruption in grand renovation projects

The ICAC, in its ongoing effort to crack down on corruption in grand renovation projects, charged five individuals in three cases on Monday (March 23) for allegedly offering bribes to members of incorporated owners (IO) and a representative of flat owners in relation to the grand renovation projects of three housing estates with project sums totalling about $90 million. The cases are set for mention at the Eastern Magistrates’ Courts this morning (March 25).

Paying close attention to corruption in building management and maintenance, the ICAC adopts a three-pronged strategy of law enforcement, systemic prevention and community education, and works closely with other government departments and organisations in combating corruption and other illicit activities in building maintenance works.

The ICAC had earlier mounted a joint operation codenamed “Shotgun” with the Competition Commission, resulting in the successful crackdown on a crime syndicate allegedly engaged in manipulating the tendering exercises of building maintenance projects through bribery and bid-rigging. After conducting intensive investigations and seeking legal advice, the ICAC yesterday charged four men and one woman.

The five defendants, aged between 42 and 70, are Cheung Kwing-kuen and Chow Shuk-ha, and three middlemen, namely Wong Sheung-yu, Cheng Kwok-foon and Kong Po-choy. They face a total of eight charges – seven of offering an advantage to an agent, contrary to section 9(2)(a) of the Prevention of Bribery Ordinance (POBO), and one of conspiracy to offer an advantage to an agent, contrary to section 9(2)(a) of the POBO and section 159A of the Crimes Ordinance.

The three housing estates in the present cases, Yan Tsui Court in Chai Wan, Hoi Tao Building in Kennedy Town and Victory Garden in Kwai Chung, were undergoing grand renovation projects at the material times.

In the first case, the charge alleges that between September 2022 and February 2023, Cheung and Chow, then member secretary of the IO of Yan Tsui Court, conspired together to offer an unspecified sum of money to a then IO member to assist contractors associated with Cheung in securing the grand renovation contract of Yan Tsui Court. The IO member rejected bribes and did not assist the contractors to secure the works contract. At an owners’ meeting, Yan Tsui Court’s grand renovation contract was awarded to Chi Fu Construction (Group) Limited at $39 million by resolution. The resolution was subsequently overturned at another owners’ meeting. At the material time, Chow worked for a company of Cheung. When Cheung assumed the position of the IO’s secretary, she was neither a flat owner nor a resident of Yan Tsui Court.

Another case concerns the grand renovation project of Hoi Tao Building. The works contract was originally awarded to a contractor, Cheung Lee Construction Co (Cheung Lee), at $3.1 million by resolution of flat owners. Some flat owners subsequently filed a case with the Lands Tribunal, requesting the overturning of the resolution. The three charges allege that between October 2022 and February 2024, Cheng and Kong, allegedly offered a red packet of an unspecified amount and two bribes of several tens of thousands of dollars and $500,000 respectively, to a representative of flat owners to assist in persuading other flat owners to stop opposing the award of the works contract to Cheung Lee, and to assist in reaching a settlement of the Lands Tribunal case. The representative did not accept the bribes and did not offer any assistance to the duo. The Lands Tribunal eventually ruled in favour of the flat owners who filed the case.

In the third case, the four charges allege that on four occasions between July 2020 and April 2024, Wong offered an unspecified amount of casino chips and renovation services worth $50,000 to a then member of the IO of Victory Garden to assist the project consultants and contractors recommended by Wong in securing the consultant and works contracts of the grand renovation project of housing estate. The IO member did not accept the advantages offered by Wong and did not assist the project consultants or contractors in obtaining any contracts. The consultancy contract for the grand renovation project of Victory Garden was eventually awarded to Will Power Architects Company Limited while the relevant works contract worth over $21 million was awarded to Smart Goal Construction Engineering Limited.

As the relevant corruption investigation is continuing, further prosecutions will not be ruled out.

The ICAC urges members of the public and practitioners of the building management and maintenance industry to report suspected corruption to the ICAC immediately through its 24-hour hotline (25 266 366).