The ICAC has arrested a Chief Building Services Engineer of the Housing Department (HD) for suspected corruption over the vetting and management of various building services contracts at a number of HD housing projects.

It was alleged that the arrested engineer had accepted over $1 million in bribes from a number of HD approved contractors and suppliers for various building services, including electrical installation, water pumps and air-conditioning.

In return, the engineer allegedly offered them various forms of assistance, including canvassing for business from contractors, favouring those contractors and suppliers in the implementation of contracts and providing advice to them generally.

Fifteen others, including building services suppliers and contractors, were also arrested in the ICAC operation code-named "Dragonfly" which commenced last Friday (August 3).

In July 2000, the ICAC received a suspected corruption report referred by HD, who offered full assistance throughout the Commission's inquiry. To date, no other HD staff are suspected to be involved in the alleged scam.

The arrestees, aged between 28 and 68, have been released on ICAC bail. Inquiries into the corruption allegations are continuing.