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Crime in Hong Kong
Opinion
SCMP Editorial

EditorialMoves to clean up Hong Kong building renovation sector can’t come too soon

Crackdowns by the ICAC and Competition Commission are a timely reminder of Hong Kong’s zero-tolerance approach to corruption

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The damaged buildings of Wang Fuk Court (right) in Tai Po are seen on March 27. The Competition Commission has launched proceedings targeting  alleged corruption and anti-competitive practices in the bids for several projects, including one linked to the Wang Fuk Court inferno. Photo: Jonathan Wong
For decades, Hong Kong has prided itself on being one of the world’s cleanest cities, where corruption is swiftly punished and the rule of law firmly upheld. However, a persistent rot has been left to fester in the building renovation sector – a problem recently linked to a horrific blaze that claimed 168 lives at a Tai Po housing estate last November.
In this respect, two recent high-profile actions by the Independent Commission Against Corruption serve as a welcome reminder of Hong Kong’s stand that corruption of any form and in any sector will not be tolerated. Late last month, 10 people were arrested on suspicion of working as part of a syndicate that used triad connections to take control of a HK$160 million (US$20.4 million) renovation project, among other offences. In the same month, the watchdog charged five people over alleged bribes offered to flat owners and owners’ corporation members during large-scale renovation projects worth about HK$90 million at three estates.

Separately, the Competition Commission has launched proceedings over six undertakings involving eight companies and 12 people concerning building maintenance projects worth nearly HK$700 million (US$89.4 million), including one bid linked to Wang Fuk Court where November’s inferno occurred. The action targets alleged corruption and anti-competitive practices in the bids for projects at 11 estates and buildings between April 2022 and September 2023.

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It is good that the authorities are finally taking this problem seriously. Unfortunately, it took a major tragedy for Hong Kong to renew attention to corruption in building renovation. Exactly how corrupt dealings contributed to the devastating fire is now a matter for the courts and a government-appointed review committee. After a thorough investigation, justice must be done and any systemic failures fixed.

The details uncovered in the recent crackdowns underscore the severity of the problem. More forceful and sustained actions are needed.

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Beyond enforcement, bid-rigging and other corrupt practices are also being addressed through a series of reforms in building management and renovation. This includes an expanded role for the Urban Renewal Authority in private maintenance projects and a higher threshold for meeting attendance so more homeowners can be physically present to vote on major maintenance projects. Hopefully, this will strengthen awareness and gatekeeping.

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