16 subcontractors and site staff arrested for substandard works at HD redevelopment project
2000-3-31
In a four-day operation, the ICAC has arrested a total of 16 people, including two supervisory site staff and 11 partners and directors of five sub-contractors, in a corruption investigation connected with sub-standard works at the redevelopment project a t Shek Yam Phase 2 in Kwai Chung (the project).
The $1,096 million Housing Department (HD) project comprises one small household block used as an elderly home, two harmony-type public housing blocks, one commercial centre and a carpark. It is overseen by a consulting firm appointed by HD.
The ICAC operation, commencing on Monday, was conducted in two phases.
In the first phase, a director, a manager and a former assistant general manager of an engineering company were arrested for allegedly installing substandard stainless steel claddings on the facades of the commercial centre.
According to the prescribed plan, 2 mm stainless steel claddings should be put on the commercial centre. The arrestees were said to have used 1.5 mm claddings and bribed construction site supervisors for covering up the substandard work.
The three arrested had also allegedly forged documents to obtain payments of about $1.5 million from the main contractor for installing the claddings claimed to be 2 mm thick.
The second phase of the operation related to sub-contracts on plastering, iron binding, formwork, concreting and plumbing works.
Two site staff of the consulting firm, four subcontractors and seven of their staff were arrested.
The site staff were employed by the consulting firm on behalf of HD on contracts to supervise the works at the site. They were suspected to have accepted monetary advantages from the sub-contractors since August 1998 in return for lax supervision.
The alleged advantages included cash, lai sees and free trips to the Mainland and Macau.
Investigations revealed that “laisee” packets, ranging from a few hundred dollars to $3,000 each, had been provided to the site supervisors during the “Lo Pan Festival”, the Winter Solstice and the Lunar New Year, as rewards for allowing poor craftsmanship or use of sub-standard materials by the sub-contractors.
In addition, free trips to the Mainland and Macau were offered to the site supervisory staff.
The ICAC investigation has the full co-operation of HD, the consulting firm and the main contractor.
All arrestees have been released on ICAC bail, pending further inquires.
The $1,096 million Housing Department (HD) project comprises one small household block used as an elderly home, two harmony-type public housing blocks, one commercial centre and a carpark. It is overseen by a consulting firm appointed by HD.
The ICAC operation, commencing on Monday, was conducted in two phases.
In the first phase, a director, a manager and a former assistant general manager of an engineering company were arrested for allegedly installing substandard stainless steel claddings on the facades of the commercial centre.
According to the prescribed plan, 2 mm stainless steel claddings should be put on the commercial centre. The arrestees were said to have used 1.5 mm claddings and bribed construction site supervisors for covering up the substandard work.
The three arrested had also allegedly forged documents to obtain payments of about $1.5 million from the main contractor for installing the claddings claimed to be 2 mm thick.
The second phase of the operation related to sub-contracts on plastering, iron binding, formwork, concreting and plumbing works.
Two site staff of the consulting firm, four subcontractors and seven of their staff were arrested.
The site staff were employed by the consulting firm on behalf of HD on contracts to supervise the works at the site. They were suspected to have accepted monetary advantages from the sub-contractors since August 1998 in return for lax supervision.
The alleged advantages included cash, lai sees and free trips to the Mainland and Macau.
Investigations revealed that “laisee” packets, ranging from a few hundred dollars to $3,000 each, had been provided to the site supervisors during the “Lo Pan Festival”, the Winter Solstice and the Lunar New Year, as rewards for allowing poor craftsmanship or use of sub-standard materials by the sub-contractors.
In addition, free trips to the Mainland and Macau were offered to the site supervisory staff.
The ICAC investigation has the full co-operation of HD, the consulting firm and the main contractor.
All arrestees have been released on ICAC bail, pending further inquires.