Five more people were arrested for alleged corruption and bid rigging in an operation that has seen more than 20 people investigated since April. The alleged mastermind and core syndicate members of the same syndicate were among 20 arrested in the first joint-operation between the Independent Commission Against Corruption and the Competition Commission. The two statutory bodies revealed on Monday they carried out a second joint-operation last week. They said the five were suspected of engaging in acts which corrupted the renovation projects of two Hong Kong Island housing estates. The key members of the syndicate allegedly offered advantages to members of the Owners' Corporation through middlemen, so as to ensure the two syndicate-controlled companies would be awarded the contracts worth HK$140 million. Work on the projects had yet to begin. The Competition Commission also found the arrestees were allegedly involved in tender-rigging for contracts on 38 residential estates and industrial buildings amounting to over HK$1 billion. The highest amount involved a contract worth HK$260 million. Felix Au, head of investigations of the Competition Commission, said their investigation found that when renovation contracts were opened for tender, staff of the company concerned were alleged to have directly, or through middlemen, exchanged and coordinated the bidding price. "Some of the project contractors, meanwhile, carried out cover bidding, such as through using a higher bidding price to cover for others, until they have controlled the bidding results, and helped the designated bidder to win the tender," he said. Officers seized several computers, mobile phones, as well as related documents after searching around 20 premises. Authorities did not rule out more arrests.
