The ICAC has arrested the chairman and managing director of a publicly listed company for their alleged involvement in a racket to supply $50 million worth of counterfeit locks for Housing Authority projects.
Fifteen others were arrested in yesterday's operation, among them a government architect attached to the Housing Department's design and standards section.
Four directors and four employees of the listed company's subsidiary were detained. The remaining six were two Japanese agents, two of their employees, a transportation worker and another Housing Authority-approved supplier.
The Independent Commission Against Corruption said last night that 12 of the 17 arrested were still being held. The rest had been released on bail.
The investigation began after the ICAC received a complaint alleging that some Housing Department staff had accepted advantages to help unapproved lock suppliers become approved contractors.
The ICAC seized about 100,000 counterfeit locks at a three-storey godown in Aberdeen owned by the listed company. The fake locks cost half as much to make as real ones with the Housing Authority paying about $200 for each lock.