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Hong Kong competition watchdog adds non-collusion declarations to tenders

The revised tender documents require statutory declarations from bidders and include a possible increase in the proposed maximum penalty for bid-rigging to 10 years.

Reported · Written up by our desk · Trade & Tariffs

Hong Kong’s Competition Commission has revised tender clauses to require bidders to sign documents and provide a statutory declaration that they did not engage in collusion on a project. The updates also spell out that bidders who sign while participating in collusive conduct could face prosecution for conspiracy to defraud, according to the SCMP Economy.

The commission said it is considering raising the maximum penalty for the proposed criminal offence from seven to 10 years. The move follows renewed scrutiny of tendering practices after last November’s Wang Fuk Court fire in Tai Po, which killed 168 people and displaced 5,000 residents.

At least two bid-rigging syndicates were linked to a HK$336 million maintenance project that was under way when the blaze broke out. The watchdog said substandard renovation materials were found to have contributed to the rapid spread of the fire.

The commission also introduced a new requirement for bidders to submit a statutory declaration affirming that their bids were prepared independently and were free of collusive practices.

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