Possible bid-rigging has been uncovered in the renovation project of Tai Po’s Wang Fuk Court — where a fire in November claimed 168 lives — as companies involved in the bidding process were found to be connected, the Independent Committee investigating the tragedy heard on Friday.
On the second day of its public hearing, the committee learned that systemic collusion among building maintenance firms to manipulate tender outcomes appears to be a common practice, yet authorities failed to act on residents’ complaints.
Leading counsel Victor Dawes outlined a series of irregularities spanning the selection of engineering consultants for the estate’s renovation, the tendering process for the main contractor, and the subsequent oversight failures — all of which ultimately contributed to the fatal blaze.
In 2018, then-35-year-old Wang Fuk Court engaged consultant Will Power Architects Co Ltd through the Urban Renewal Authority’s “Smart Tender” platform for a building inspection. Will Power Architects’ quotation of HK$220,000 ($28,076) was significantly below the market average of HK$500,000 for similar projects.
The proposal was passed with 2,999 votes, or 67.5 percent of the estate’s flat owners, much higher than the second-ranked Far East Architects Ltd, which submitted a lower HK$188,000 quotation.
When the estate later solicited bids for the main renovation works, 57 contractors submitted tenders. Will Power Architects, now acting as the consultant, shortlisted 14 contractors for evaluation for residents’ consideration, based on the consultant’s own analysis and ratings. Dawes suggested that residents may have been misled.
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Citing a submission from the consultant’s project manager, Dawes said that Will Power Architects removed Prestige Construction and Engineering’s records of legal proceedings and details of litigation, which ultimately resulted in its being elevated to the top choice.
Dawes also raised concerns that the contract director, Hau Wa-kin, had ties to five other bidding companies, three of which were considered the “second choice”.
In early 2024, a general meeting approved the full renovation plan with 80.5 percent support and selected Prestige as the main contractor. However, residents raised serious concerns about proxy voting irregularities: Despite only about 200 people attending in person, 570 votes were cast.
Residents alleged that a district councilor had collected proxy votes under the pretext of helping residents apply for subsidies ranging from HK$50,000 to HK$80,000.
Bureaucratic maze Residents also lodged complaints with several government departments, including the Buildings Department, the Home Affairs Department, and the Urban Renewal Authority, only to find themselves trapped in a bureaucratic maze, with each department claiming that the issue fell outside its jurisdiction.
Dawes also questioned the role of Wilson Ng, the sole registered inspector for the consulting firm and once its sole director. Evidence showed Ng received HK$15,000 monthly — totaling HK$190,000 — in his post, yet he was a full-time Swire Properties employee until March 2019 and remained with the company at the time of the incident.
Ng admitted he never actively supervised the renovation work. A WhatsApp message presented to the committee showed an intermediary offering Ng freelance work with instructions to “just sign documents” — even asking him to backdate signatures.
Dawes characterized Ng as a “rubber stamp”, questioning how he could adequately supervise 56 projects simultaneously. Following the Wang Fuk Court fire, Ng transferred his shares to Wong Hap-yin, Will Power Architects’ current director.
Dawes said tender irregularities are common. There were previous cases of bid-rigging groups operating with consultants quoting below cost, and police submissions pointed to triad-linked firms where corruption is rife.
“The Independent Commission Against Corruption noted that registered inspectors are highly vulnerable to corruption,” Dawes said.
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Of Hong Kong’s 600 such inspectors, only 100 take on mandatory building inspections, raising corruption risks. Many engineers avoid the maintenance market fearing intimidation, calling the work “not worth doing” — a vicious cycle that the ICAC said requires targeted action, he added.
The committee also heard that the contractor used nonflame-retardant polyurethane-foam boards, which investigators found contributed to the rapid spread of the fire. Residents had reported this issue to several departments, including the Fire Services Department and the Independent Checking Unit of the Housing Bureau, but their complaints were overlooked.
The contractor has applied 16 times over six months to deactivate the estate’s fire alarm system. Despite 12 visits from the Fire Services Department, officers failed to inspect the malfunctioning system, the committee heard.
In response to media inquiries, a government spokesperson reiterated full support for the Independent Commission’s investigation, while noting that the evidence presented so far reflects only the current stage of proceedings and does not constitute final conclusions. The government’s counsel will submit additional evidence and arguments at subsequent hearings. The spokesperson also highlighted the government’s consistent efforts to pursue investigations, implement institutional reforms, and provide support measures following the fire. They pledged to further refine policies and systems in line with the commission’s recommendations once its final report is issued.
