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My Take
Opinion
Alex Lo

My Take | The government must act against corruption in building renovation contracts

Owners should be protected against scams that see them footing huge bills for substandard work while contractors make a mint

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Garden Vista in Sha Tin. Photo: Sam Tsang
Alex Loin Toronto

One of the commonest and most lucrative sources of corruption in Hong Kong has been rigged renovation works on private housing estates. These usually involve multimillion-dollar scams, corrupt contractors and subcontractors, and a compromised owners’ incorporated committee.

One particularly notorious case has been The Garden Vista. Flat owners on the private housing estate in Sha Tin had paid a total of HK$260 million for the renovation, yet had to endure repeated delays as well as substandard and unfinished work.

At least seven people were implicated in the scam, but so far, only one person, Yau Shui-tin, has been jailed. The subcontractor was sentenced to 35 months this week after a guilty plea. He told the Independent Commission Against Corruption that he had conspired with six others to whom a total of HK$45 million had been paid. But so far, no one else has been charged.

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Those named by Yau included a former chairman of the incorporated owners’ committee, a property manager, two consultants, a shareholder in an architects’ firm and a director of a construction firm. In other words, it allegedly involved senior people throughout the renovation project from contract bidding and hiring to repair works.

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The ICAC said the investigation was continuing. We can only hope those responsible will be brought to justice. The Garden Vista is probably just the tip of the iceberg. Regulations currently require buildings older than 30 years to carry out inspections and, if found necessary, repairs and renovation. There are thousands of such buildings. Strangely, you have inspectors who monitor if private buildings and estates are adhering to safety standards but there is no dedicated authority to monitor renovation-related corruption.

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