Hong Kong police have proposed introducing agency-enforced legislation to criminalize bid-rigging, along with more attractive leniency and cooperation agreements for whistleblowers, in the wake of the city’s deadliest fire in decades.
In a memorandum to an independent judge-led panel investigating last November’s disaster at the Wang Fook Court released on Friday, Organized Crime and Triad Bureau Superintendent Lam Kai Chor said the current civil regime of competition law lacked a deterrent effect.
“There is a possibility that the sanctions imposed will not be able to overcome the potential gains from the prohibited behaviors,” Lam said.
“To combat bid rigging and to address challenges under the current framework, it is proposed to enact detailed criminal legislation to be implemented by (a) designated agency.”
Under the current system, individuals involved in serious anti-competitive acts are punished only with fines.
To address the enforcement challenge posed by the secrecy and clandestine nature of bid-rigging, Lam proposed enhancing the appeal of “leniency” or “cooperation agreements” to encourage whistleblowers or their accomplices to come forward.
