Highways to hell

The ICAC case known as Operation Waterspout is definitely one to watch, for a number of reasons. First, for the large number and seniority of the people involved. The South China Morning Post reported on April 4 that 20 people had been arrested, including the former director of civil engineering and development. The others included five Highways Department officials, nine subcontractors, four senior executives of three construction companies, and one other person. The director is the most senior former or serving official ever arrested by the Independent Commission Against Corruption.

Second, the arrests appear to point to long-standing problems within the Highways Department over the tendering and administration of contracts. The ICAC alleges that the arrested officials had accepted advantages from subcontractors and senior executives of construction companies engaged in road maintenance. In return, the officials are said to have disclosed tendering information to help the subcontractors and companies secure contracts. Moreover, the companies are said to have received excessive works orders - that is, being asked to do more than necessary, presumably to boost their earnings.

Third, the time-honoured methods of slipping packets of money to government officials in return for favours are still in use. In this case, the senior government engineer and one of the subcontractors were arrested following an allegedly corrupt transaction. An envelope containing HK$20,000 cash was recovered from the official.

Fourth, the ICAC began investigations after receiving complaints from within the Highways Department. The former director had allegedly attempted to exert undue influence on senior officers to remove a particular engineer from his post, to avoid proper supervision of the work by the company.

It is encouraging that a member of staff was willing to speak up to the ICAC but worrying that, apparently, such blatant practices can survive for so long within the administration. How good is internal monitoring?

Fifth, the case presents a wake-up call to top officials that they have a role to play in keeping activities clean on their watch. If the case goes to court, the public will learn in more detail about how the rot set in at the Highways Department, and how it was sustained for a long period. This leads us to ask whether, generally, there is a lack of supervision on the size and validity of government contracts. There are certainly many other types of works projects where you can't help but wonder whether they are really needed.