Six netted in drainage survey scam

2000-9-20

In an operation which commenced yesterday (Tuesday), the ICAC has arrested six Mainland workers suspected of having corruptly colluded to submit false survey reports on the condition of over 2,000 sewage and drainage pipes throughout the territory to the Drainage Services Department (DSD).

The ICAC commenced investigation after receiving information in July this year alleging that a survey subcontractor might have submitted falsified pipe survey results to DSD and corruption was suspected.

The survey was commissioned by DSD in early 1998 to identify leakage of sewage and drainage pipes that might affect the stability of slopes for the Department to carry out subsequent remedial works.

An engineering consultant was appointed to handle the tendering and supervision of this territory-wide survey.

In February last year, the survey was awarded to a Mainland engineering company as the main contractor under a term contract worth about $30 million.

The main contractor subcontracted the major part of the project to a local engineering company.

Under the term contract, the subcontractor was to carry out internal inspection of 18,000 pipes for sewers and drains at about 1,100 sites throughout the territory.

Survey reports, comprising videotapes and photographs taken with a wheel-mounted remote controlled video camera on the conditions of various pipes, were submitted to the DSD through the main contractor and the engineering consultant. The project was comp leted in May this year.

Investigation revealed that among the survey reports examined by the engineer consultant, some photographs as well as video records were falsified.

It was suspected that in some cases the same photographs were used to represent the internal condition of different pipes while some of the pipes had never undergone the survey.

It was also believed that the site staff conducting the survey might have passed the video camera through a single pipe a number of times, but the videos or the photographs taken were used to represent the survey results of various pipes.

Investigation also revealed that the site staff might have chosen to inspect an easily accessible pipe to save effort, although such pipes might not be covered by the survey.

A thorough examination by the engineer consultant of all the videotapes, covering 150 km of pipes, and 30,000 photographs showed that the survey reports relating to at least 2,000 pipes were false.

The consultant found that some videotapes were replicates, while some photographs had been fraudulently edited.

It was alleged that some staff members of the main contractor and the subcontractor might have corruptly colluded to facilitate the scam.

Due to the suspected scam, a re-survey of the relevant pipes and random checks of the remaining ones have to be carried out.

The arrestees, aged between 26 and 45, are still being detained, pending further inquiries.
Back to Index