Hong Kong police are urging the government to criminalize bid-rigging in the construction sector following a catastrophic residential fire [1].
This proposal marks a significant shift in how the city handles collusion in building maintenance. Authorities argue that existing civil penalties are insufficient to prevent the unsafe practices that can lead to mass casualties in high-density housing.
Superintendent Lam Kai-chor of the organized crime and triad bureau submitted the proposal to a judge-led independent committee on Friday, May 17, 2024 [1]. The request follows the November 2023 [1] fire at Wang Fuk Court in the Tai Po district. That blaze killed 168 people, including a firefighter, making it the deadliest fire in Hong Kong in decades [3].
Lam Kai-chor said the current civil regime of the Competition Ordinance is insufficient to tackle bid-rigging that endangers public safety [2]. The police proposal calls for the creation of a designated enforcement agency to oversee the new laws. It also suggests implementing more attractive leniency and cooperation agreements to encourage whistleblowers to report collusion [1].
Police officials said that the existing civil competition regime failed to deter the kind of collusion that contributes to unsafe building practices [1]. By moving these offenses from civil to criminal court, the police aim to create a stronger deterrent against triad-linked or corporate bid-rigging in the construction industry.
However, some critics suggest these changes may not be enough. An unnamed expert said that new building-maintenance measures after the Tai Po fire only scratch the surface of deeper systemic issues [4].
“The fire at Wang Fuk Court killed 168 people, including a firefighter, making it the deadliest blaze in Hong Kong in decades.”
The move to criminalize bid-rigging represents an attempt to break the link between organized crime and the construction industry. Because the Competition Ordinance primarily handles economic harm, it often lacks the teeth to address safety violations. If adopted, these measures would shift the focus from financial penalties to potential imprisonment, potentially altering the risk-reward calculus for contractors who collude to bypass safety standards.
