Twenty-two arrested by ICAC for suspected corruption in seven grand renovation projects preventing award of contracts worth over $100 million

The ICAC mounted a law enforcement operation codenamed “Lion Rock” this week (February 9 and 10) to combat suspected corruption and other related illicit activities involving the grand renovation projects of seven housing estates and buildings across the territory, arresting a total of 22 individuals.

The arrestees, aged between 36 and 78, are 17 men and five women, including the directors and staff members of four project consultancy firms and three project contractors, as well as some of the chairpersons of incorporated owners (IO) of the estates and buildings concerned.

During the operation, search warrants were executed by ICAC officers to conduct searches at multiple locations, including offices of the project consultancy firms and project contractors. Various exhibits were also seized, including the relevant tender and works documents, as well as banking and accounting records.

The operation involved the grand renovation projects at three housing estates, three residential buildings and an industrial building across the territory in Tsuen Wan, Sham Shui Po, Tai Kok Tsui, San Po Kong, Kwun Tong, Sheung Wan and Shau Kei Wan. The individual contract sum ranged from $2 million to over $100 million, while the total contract sum amounts to over $200 million. Two of the projects, worth totalling over $100 million, were still at the preparatory stage. The ICAC’s operation prevented the award of the two contracts concerned.

The ICAC investigation arose from a corruption complaint alleging that certain project contractors might have offered bribes to project consultancy firms and IO members for securing the grand renovation projects of the housing estates and buildings by corrupt means.

The ICAC investigation revealed that the project consultancy firms and the project contractors had fabricated their accounting records to cover up dubious incomes and expenses. The investigation also revealed that one of the IO chairpersons had allegedly divulged confidential tender interview questions upon the request of a project consultancy firm to assist the latter in securing a consultancy contract.

As the relevant corruption investigation is continuing, the ICAC does not rule out further law enforcement actions.

Following the enforcement action, the ICAC had proactively contacted relevant stakeholders of the housing estates and buildings concerned, reminding them to stay vigilant to corruption risks when handling the projects.

The ICAC has always attached great importance to corruption in building management and maintenance, adopting a three-pronged strategy of law enforcement, systemic prevention and community education in tackling these cases. The ICAC will continue to work closely with other government departments and organisations in combating corruption and other illicit activities in building maintenance works.

The ICAC urges members of the public and relevant industry practitioners that if they suspect corruption in building maintenance, they should report to the ICAC immediately through its 24-hour hotline (25 266 366).