Watchdog calls for criminalising bid-rigging

The Competition Commission has proposed making serious anti-competitive behaviour, including bid-rigging, a criminal offence, as a three-day final hearing began on Wednesday into the deadly fire at Tai Po’s Wang Fuk Court.

The session marks the sixth and final round of hearings for the independent committee investigating the tragedy, which claimed 168 lives.

Other than the independent committee, eight stakeholders have also submitted written closing addresses, with most parties also choosing to deliver verbal closing remarks during the three-day session.

In his verbal address, the representative from the antitrust watchdog described bid-rigging as a widespread, systematic, and long-standing practice in Hong Kong's building maintenance sector.

The commission said it is necessary to make serious anti-competitive conduct in relation to bids and tenders, such as bid-rigging, price-fixing and market-sharing, criminally prosecutable, with offenders facing severe custodial sentences.

Other parties that submitted written closing remarks included the 12th Management Committee of the Incorporated Owners of Wang Fuk Court, nine Wang Fuk residents, the government and the Urban Renewal Authority.

Submissions were also made by property management company ISS EastPoint Properties, fire service contractor Victory Fire Engineering, as well as Leung Ping-kay, the director of another fire service contractor China Status Development and Engineering.

Their written submissions will be uploaded to the committee’s website before they make their verbal addresses.

During the hearing, the counsel representing ISS EastPoint, Cedric Yeung, stressed that the company did not play any supervisory role in any of the renovation works at Wang Fuk Court.

Yeung also said Victory Fire Engineering was trying to shift blame to ISS, describing evidence given by Victory Fire’s director Chung Kit-man, as unbelievable.

Chung had previously testified that he made phone calls, including one that lasted six seconds to an ISS staff member, to request a fire system shutdown notice.

Yeung said it was highly improbable for someone to introduce themselves and complete such a request within such a short period.

Meanwhile, Ross Yuen, the counsel representing the Urban Renewal Authority stressed that it merely acted as a facilitator to reduce bid-rigging activities and has a limited role due to its lack of enforcement power.

Yuen noted that an enhanced "Smart Tender" scheme will allow the authority to better serve as a gatekeeper in helping owners assess and select project consultants and contractors in future.

The inquiry also heard from the counsel representing Leung Ping-kay, who argued that escaping the blaze would still have been extremely difficult even if the fire alarm systems had functioned properly.

The chairman of the committee, Justice David Lok, disagreed, saying he would find it unacceptable if Leung was attempting to use this argument to diminish his responsibility.

The hearing on Wednesday concluded at around 12.00pm, about an hour ahead of schedule.

Counsels representing the nine Wang Fuk Court residents and the government are expected to give their verbal addresses on Thursday.

Edited by Aaron Tam ...