12 raids launched over alleged renovations bid-rigging

The Competition Commission conducted 12 raids across Hong Kong on Wednesday, targeting building contractors and individuals suspected of bid-rigging maintenance projects at 28 housing estates and buildings. These raids were part of a new crackdown on anti-competitive practices within the industry. The value of the contracts involved is estimated at HK$500 million.

The targeted locations include the offices of four building contractors and the homes of the individuals involved. The 28 buildings are spread across Hong Kong, with some projects still in the awarding stage, while others have either commenced or been completed prior to the investigation. The Commission, known as "Hunter," pursued this latest operation after discovering new leads during their initial round of searches in January.

They uncovered a series of suspicious text messages suggesting the existence of another bid-rigging syndicate attempting to manipulate the outcome of a building maintenance project's tender. The messages revealed that a contractor, not previously under investigation, had allegedly scouted for other contractors through middlemen to submit cover bids.

Additionally, the contractor was said to have engaged in anti-competitive practices in multiple building maintenance projects, including disseminating bidding price instructions, or "homework," to manipulate tender results.