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Anti-Corruption Portal
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Hong Kong Plans to Criminalise Bid-Rigging in Certain Types of Work

The Hong Kong Government has announced a series of measures to combat bid-rigging in tenders for building maintenance and renovation projects.

Currently, such violations are primarily addressed through the civil regime under the Competition Ordinance. To strengthen enforcement, the Government proposes to criminalise four types of serious anti-competitive conduct:

  • bid-rigging;
  • price-fixing;
  • market sharing;
  • output restrictions.

The new provisions will cover not only tendering for works contractors but also related preparatory arrangements, including the engagement of consultants at the preliminary stage.

The proposed criminal offences will carry a maximum penalty of 10 years' imprisonment and a fine. The maximum fine will be determined as the highest of three amounts: HK$10 million, three times the total value of commercial gains derived from the contravention, or an amount calculated at 50% of the undertaking's local turnover for each year the contravention occurred.

In addition, the Government proposes to expand the investigative powers of law enforcement agencies by amending the Organised and Serious Crimes Ordinance and the Independent Commission Against Corruption Ordinance. The proposed measures include obtaining court orders requiring the provision of information and documents, imposing enhanced sentences and confiscating property belonging to convicted offenders.

To coordinate efforts to combat bid-rigging, a joint task force will also be established, comprising representatives from the Police Force, the Independent Commission Against Corruption (ICAC) and the Competition Commission. Its activities will include intelligence sharing, joint operations and preventive measures.

Tags
Corruption in public procurement
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