ICAC and Police joint operation against corrupt triad infiltration in building maintenance, arrest 42

The Independent Commission Against Corruption (ICAC) has received corruption complaints from the public since mid-2025, alleging that a project consultancy firm had assisted construction contractors to secure building maintenance contracts in various residential estates through bribery.

Detailed intelligence analyses and intensive investigations by the ICAC revealed that the project consultancy firm, which had allegedly secured consultancy contracts of various building maintenance projects at unreasonably low fees, had engaged triad members linked to the firm as middlemen to manipulate the tendering process of the projects through corrupt means, aiming to assist contractors in securing a high-priced contract in a residential estate.

In view of the findings, the ICAC and the Police mounted a joint operation codenamed “Scabbard” for two consecutive days on March 26 and 27, joining hands to crack down on triad infiltration in building maintenance projects through corrupt means, raiding premises controlled by relevant triads for illicit activities.

The ICAC investigation revealed that the project consultancy firm secured the consultancy contract of the grand renovation project of a housing estate under the Tenants Purchase Scheme in the New Territories in mid-2025. The project sum was estimated to be over $160 million and the consultancy firm secured the consultancy contract at a price far below a reasonable level (i.e. 0.5% of the contract sum). It is suspected that the project consultancy firm would subsequently contact potential bidders through triad members, and by means of bribery, manipulate the tendering process. While the relevant tendering exercise is still at preparatory stage, the ICAC’s early intervention is believed to have prevented the corrupt dealings from taking place and intercepted triad infiltration in the grand renovation project of the housing estate. (Diagram 1)

In addition, the project consultancy firm secured the consultancy contract for the grand renovation project of a residential building on Hong Kong Island in 2022. The project was subsequently awarded at $20 million to a project contractor, which had various dubious expenditures totalling several million dollars. Investigation by the ICAC also found that a registered inspector of the project consultancy firm was suspected of failing to fulfil his inspection duties and signed on Building Inspection Reports without conducting any inspection. As the project has already commenced, the ICAC has referred the incident to the Buildings Department for further inspection due to safety concerns. (Diagram 2)

The project consultancy firm, together with a director of the property management company of a residential building in Kowloon, is also suspected of accepting bribes from a project contractor for lobbying its flat owners to award the contract of a fire safety improvement project to the contractor at approximately twice the market price, i.e. $1.4 million, in early 2026. The contract is yet to be awarded and the enforcement action of the ICAC is believed to have thwarted the illicit dealings. (Diagram 3)

In the operation, the ICAC arrested 10 men aged between 28 and 61, including the proprietor and a registered inspector of a project consultancy firm concerned, several middlemen with triad background, the proprietors of two project contractors and a property management company director.

ICAC officers also executed search warrants to conduct searches at 22 locations, including offices of the project consultancy firm and project contractors, as well as residences of the arrestees. Voluminous exhibits were also seized, including documents relating to the building maintenance projects, as well as banking and accounting records. Reviewing those documents, initial findings by the ICAC suggested that the companies involved in the present case might have fabricated accounting records to cover up dubious incomes and expenses.

Following the ICAC’s enforcement actions, the Police swiftly launched raids at multiple locations in the New Territories believed to be controlled by the abovementioned individuals with triad background, shutting down two unlawful Mahjong dens and an illegal baccarat gambling den. A total of 32 individuals, comprising 14 men and 18 women, aged between 30 and 75, were arrested by the Police for offences including “operating gambling establishments” and “gambling in any place not being a gambling establishment”.

Following the Operation “Scabbard”, the ICAC had proactively contacted relevant stakeholders of the housing estate and buildings concerned, reminding them to stay vigilant to corruption risks when handling the projects.

An ICAC spokesperson said, “The ICAC has been paying close attention to corruption in building management and maintenance. The Commission will continue to work closely with the Police as well as other government departments and regulatory bodies to combat potential and suspected corruption and other illicit activities in building maintenance projects by intervention at an early stage in cases deemed appropriate. Works contracts of two projects worth totalling over $160 million revealed in Operation ‘Scabbard’ are yet to be awarded. The relevant corruption investigation is ongoing, and the ICAC does not rule out further enforcement actions.”

“The Police is highly concerned about suspected illegal interference in building maintenance and management projects by criminals. Any illegal activities will be pursued resolutely. The Police reiterates that combating triad activities is one of the Force’s top operational priorities. The Police does not tolerate any unlawful, violent, or triad-related activities in society, and will continue to co-operate with the ICAC and other law enforcement agencies to combat related crimes and cut the source of income of criminals,” a Police spokesperson noted.

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). The Police also calls on citizens, particularly property owners, to proactively participate in building management affairs and report any illegalities to law enforcement agencies.