Hong Kong anti-graft watchdog arrest 10 in suspected bribery case linked to CK Asset building project
Hong Kong's anti-graft watchdog has arrested 10 men in a suspected bribery case linked to real estate giant CK Asset's residential project in Kwun Tong, in which sub-contractors allegedly offered incentives in exchange for lax oversight of steel reinforcement works.
The Independent Commission Against Corruption (ICAC) said on Wednesday that the 10, aged between 29 and 52, included an employee of the main contractor, five proprietors, operators or employees of subcontractors, and four site supervisors of a consultancy firm.
They were arrested on suspicion of bribery, conspiracy to defraud, and using false documents.
In an emailed reply to HKFP on Thursday, CK Asset said it was 'highly concerned' about the alleged bribery at the Anderson Road project site.
The company said it supported the ICAC's operation and had completed 'preliminary inspection' of the project concerned, adding that it was in touch with the Buildings Department for follow-up actions.
The Anderson Road project in Kwun Tong consists of six residential buildings, offering a total of 2,926 units, of which at least 1,000 will be sold at 80 per cent of market value under the government's 'starter homes' scheme for Hong Kong residents. CK Asset won the tender with a HK$4.9 billion bid in May 2020.
Matthew Chang, principal investigator at the ICAC, said at a press conference on Wednesday that the ICAC suspected that some sub-contractors were hoping to increase their profits by not following the approved building plan, thereby cutting costs.
'They dangled carrots in front of site supervisors in exchange for their lax supervision and tolerance of construction works that did not meet regulations,' Chang said in Cantonese.
Cash, coupons, fine-dining
Lui Kar-chung, chief investigator at the ICAC, said during the same press conference that the watchdog received a complaint about the alleged bribery last year.
At first, the complaint involved only one of the six buildings under construction, Lui said. But the investigation was expanded, and the ICAC found that all six buildings had installed steel rebars that did not match the approved construction plan.
The problems 'included rebars having wider gaps in between, being fewer in numbers, thinner, absent, not linked, or offset in positions,' Lui said. In some locations, rebars – a type of steel reinforcement – were 530 millimetres off their positions in the approved building plan, he said.
The ICAC investigation found that the sub-contractors had offered the main contractor and site supervisors cash between thousands to tens of thousands of dollars as well as mooncake vouchers, Lui said.
They also visited fine dining restaurants that 'charge thousands of dollars per head' and night clubs, he added.
Bon Ko, the chief structural engineer at the Buildings Department, said in the same press conference that the department also launched its own inspections at the Anderson Road project last September following a complaint it received about suspected violations of the Buildings Ordinance last August.
Following four inspections, the department ordered the developer to stop construction after finding insufficient steel rebars at some roofs of the six buildings, Ko said.
She added that subsequent concrete opening-up work revealed that steel rebars in all six buildings had shown 'serious deviations' from the approved plan. But the department concluded that the buildings did not show immediate danger after considering the size of the problematic areas and surrounding structures, she said.
On average, the load-bearing rebars were 10 per cent fewer in number than specified in the approved plan, Ko said.
The Buildings Department is consulting the Department of Justice on potential prosecutions, she added.
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