10 arrested in Hong Kong in bribery case centred on CK Asset development

A CK Asset residential project in Hong Kong has been caught up in a bribery scandal after the city’s graft-buster uncovered subcontractors allegedly offering incentives to site supervisors in exchange for lax oversight of subpar steel reinforcement work. The Independent Commission Against Corruption (ICAC) said on Wednesday that of 10 suspects, aged 29 to 52, arrested in connection with the case, one was an employee of the main contractor, five were proprietors, operators or employees of some subcontractors, and four were site supervisors at an engineering consultancy. At the centre of the controversy is CK Asset’s Anderson Road project in Kwun Tong, which consists of six residential towers providing 2,926 flats, including about 1,000 that are designated under a “starter homes” pilot scheme for Hong Kong residents. The ICAC said individuals from steel reinforcement work subcontractors allegedly provided illicit incentives to site supervisors in exchange for lenient oversight of subpar construction practices, deviating from the construction plans approved by the Buildings Department in a bid to maximise profits and save costs. Incentives included cash in red packets, known as lai see, ranging from thousands to tens of thousands of Hong Kong dollars, a large number of mooncake vouchers, lavish meals at high-end restaurants costing thousands per person, and entertainment at nightclubs costing between HK$20,000 (US$2,560) and HK$30,000 on each occasion, the anti-corruption agency said. “The resident site supervision staff of the consultancy firm concerned allegedly accepted bribes and falsely represented in the designated forms of the developer that they had conducted quality inspections of the steel reinforcement works, thereby misleading the developer into believing that the works were properly completed,” the ICAC said. Those arrested are suspected of having committed offences including bribery, accepting bribes, conspiracy to defraud and using false documents. Investigations revealed that reinforcement bars in concrete in all six buildings were either thinner than required, missing, displaced or loosely arranged, failing to comply with approved building plans. They also found that the number of steel bars and bar-benders deployed by some of the subcontractors was reduced. Inspections by the Buildings Department also found that the number of main reinforcement bars in the structural components was, on average, 10 per cent below approved specifications. Deviations including the spacing, thickness and positions were also discovered. At some spots in towers 1 and 2, dislocations were as much as 530mm, the probe found. But department officials said on Wednesday that the overall structural integrity of the buildings did not present an immediate danger, as the surrounding concrete wall design could compensate for the load-bearing requirements. The department asked the project’s registered structural engineers and registered contractors to take the necessary remedial measures. Construction at the site was halted in October last year after the department received complaints that the rebar in some structures had not been installed according to standards under the Buildings Ordinance. “The incident is rare and isolated. The existing building project monitoring system is stringent and functioning effectively,” said Bon Ko Mei-yee, the department’s chief civil engineer. The Post learned that the main contractor was Superb Interior Contracting Company. The company reportedly took over the role from Aggressive Construction Engineering, which had been removed from the government’s registered list of contractors in 2023 after several fatal accidents at its sites. Without naming any company, the department said the main contractor, apart from the Anderson Road project, was also handling five other private developments. It said it had already checked all the sites and had not found any abnormalities, and would ask the developers concerned to fully review the reinforcement bar records. CK Asset Holdings, controlled by the family of tycoon Li Ka-shing, said it was deeply concerned about the allegations, reiterating its commitment to supporting the ICAC’s actions to safeguard the city’s integrity in business operations. The developer also said it had completed a preliminary review of the project and was in discussions with the department regarding appropriate follow-up measures. The “starter homes” scheme was introduced by former leader Carrie Lam Cheng Yuet-ngor in 2017, with the aim of assisting first-time homebuyers who are ineligible for the Home Ownership Scheme and cannot afford private housing. The Housing Bureau said on Wednesday that it was very concerned about the incident and would keep a close eye on how it would affect the progress of the project. The bureau also urged the project developer to carry out the necessary follow-up actions as required by the Buildings Department as soon as possible. The Hong Kong Construction Association condemned the case, saying the alleged illegal acts had severely tarnished the industry’s reputation and disregarded public interest.

10 arrested in Hong Kong in bribery case centred on CK Asset development

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}ICAC alleges that subcontractors offered site supervisors perks in exchange for lax oversight of steel rebar work on Anderson Road project

ICAC alleges that subcontractors offered site supervisors perks in exchange for lax oversight of steel rebar work on Anderson Road project