LCQ7: Corruption Reports involving Building Management

Following is a question by Ir Dr Hon Ho Chung Tai and a written reply by the Secretary for Home Affairs, Mr Tsang Tak-sing, in the Legislative Council today (May 28):

Question:

It has been reported that last year, the Independent Commission Against Corruption ("ICAC") received over 2,000 private sector corruption reports, of which 40% were related to building maintenance works. In this connection, will the Government inform this Council:

(a) of the number of private sector corruption reports involving building maintenance works received by ICAC in the past three years;

(b) whether the works referred to in (a) will be inspected afresh; if so, of the details; and

(c) apart from amending the relevant provisions of the Building Management Ordinance (Cap. 344) and implementing the Building Management (Amendment) Ordinance 2007 (Ordinance No. 5 of 2007), whether the authorities had formulated any other measures in the past three years for monitoring the tendering procedures on private building maintenance works undertaken by owners' corporations and preventing malpractices; if so, of the details?

Reply:

Madam President,

(a) In the past three years, the number of corruption reports involving building management received by the ICAC are 978 (2005), 822 (2006) and 972 (2007) respectively. Most of them are related to building maintenance works and building management contracts.

(b) The Buildings Department regulates building maintenance works in accordance with the Buildings Ordinance to ensure that the works are carried out in compliance with the law. If the Buildings Department receives a case referral from the ICAC, the Department will, depending on the nature, conduct site inspections to ascertain whether the works conform to the legal requirements.

(c) The Building Management Ordinance stipulates that an owners' corporation (OC) shall invite tender for any projects with a total value over $200,000, and that a general meeting shall be convened to endorse the relevant tender if the total value of the project exceeds 20% of the annual budget of the OC. Furthermore, an OC has to observe the Code of Practice on Procurement of Supplies, Goods & Services and the Code of Practice on Building Management & Maintenance under the Building Management Ordinance during the tendering process. The above requirements seek to enhance the transparency of OCs in carrying out maintenance works, and ensure that OCs effectively supervise the tendering and the maintenance works concerned.

Besides, the ICAC proactively assists owners and OCs in taking effective preventive measures against corruption. In addition, the Government actively promotes clean and effective building maintenance through education and publicity. The Government extensively publicises the message of integrity and quality building management and maintenance through television, radio, newspapers, websites, as well as workshops and roving exhibitions co-organised with the 18 District Councils. The ICAC and the Hong Kong Housing Society have jointly compiled a Building Maintenance Toolkit to provide a practical, user-friendly and informative guide on measures that can be taken by OCs to prevent corruption in the tendering process for building maintenance works. The toolkit contains sample probity clauses in maintenance consultancy agreements, project consultancy fees and tender evaluation forms, and sample anti-collusion clauses in tender documents for reference and use by owners. The toolkit, together with posters and leaflets, will be distributed to all OCs in Hong Kong .

Ends/Wednesday, May 28, 2008