Hong Kong anti-graft raid: 21 arrested in post-deadly-fire renovation corruption crackdown

HONG KONG: Hong Kong’s anti-corruption watchdog has rounded up 21 people in a major investigation into alleged graft tied to renovation projects at two housing estates, a move that reflects growing pressure on authorities to clean up the construction industry after last year’s deadly high-rise fire.

The Independent Commission Against Corruption (ICAC) said the arrests followed enforcement operations carried out last week against a corruption syndicate with suspected links to triad groups. Those taken into custody come from across the renovation chain — including middlemen, project consultants, contractors and members of the estates’ owners’ corporations.

The latest action comes at a time when public trust has been badly shaken. In late November, a catastrophic fire tore through seven high-rise buildings, killing more than 160 people and taking nearly two days to bring under control. The tragedy sparked public outrage and renewed fears over building safety, with many residents questioning how such risks were allowed to go unchecked.

Responding to the fallout, Chief Executive John Lee last month set up an independent committee to look into the fire, the construction sector more broadly and whether shady practices such as bid-rigging have played a role in renovation projects.

Investigators say that in one of the estates, a contractor is suspected of bribing a project consultant and several members of the owners’ corporation to secure a renovation contract worth HK$33 million (US$4.24 million). At the other estate, middlemen allegedly used corrupt tactics to collect proxy authorisations from homeowners, a move believed to be aimed at manipulating votes and positioning themselves to win future contracts. The ICAC did not go into further detail.

“Building maintenance affects people’s daily lives and involves many different parties,” the ICAC said, stressing that it treats corruption in this area as a serious concern.

The two estates targeted in the latest operation are in Kwun Tong in eastern Kowloon and are not linked to Wang Fuk Court, where the fatal fire broke out on November 26. Even so, the ICAC said it has already arrested at least 11 people in a separate investigation into renovation work at that fire-hit complex.

Authorities have previously said that substandard materials used during renovation works helped fuel the blaze, adding urgency to calls from the public for tougher oversight, greater accountability and meaningful reform in Hong Kong’s construction and building maintenance sectors.