12 raids launched over alleged renovations bid-rigging

The Competition Commission conducted 12 raids across Hong Kong on Thursday, targeting building contractors and individuals accused of bid-rigging in maintenance projects for 28 housing estates and buildings. The crackdown aims to combat anti-competitive practices within the industry. The total value of the contracts involved is estimated at approximately HK$500 million.

The targeted properties are situated throughout Hong Kong, with some projects still awaiting award, while others have been either awarded or completed prior to the investigation. The Commission has been in contact with relevant stakeholders regarding the buildings involved in the case. This latest operation, referred to as "Hunter," emerged after investigators uncovered fresh leads during their initial round of searches in January.

They discovered a series of suspicious text messages that suggested the existence of another hidden bid-rigging syndicate attempting to influence the outcome of a building maintenance project's tendering process. According to the Commission, the contractor involved in this alleged scheme had scouted for other contractors through intermediaries to submit cover bids and had engaged in anti-competitive practices across multiple building maintenance projects.

This included providing instructions on bidding prices, a practice known as "homework," to manipulate tender results.