Hongfu Garden Fire | The Law Society advocates amending the law, collusion can be sentenced to imprisonment, with a maximum of 7 years in prison

The Tai Po Hong Fu Court fire bidding issue has attracted extreme market attention. The Law Society recommends that, in the short term, the Competition Ordinance should be amended to classify serious anti-competitive behaviors such as bid-rigging as imprisonable offenses, with a maximum sentence of 7 years. In the long term, it is suggested to study the establishment of a dedicated law.

Law Society President Maurice Liao attended the TVB program “Clear and Straightforward” and stated that the fourth hearing of Hong Fu Court has been completed. The next step includes reviewing the situation of bid-rigging in Hong Kong. Currently, under the Competition Ordinance, penalties are only fines and civil in nature. It is proposed to amend Section 91 to turn serious anti-competitive behaviors into imprisonable offenses. Countries like the UK and Canada currently impose maximum sentences of 5 to 14 years. Similar measures have been tried under the Securities and Futures Ordinance.

He also mentioned that the Society’s dedicated working group will study whether to start from the Prevention of Bribery Ordinance and expand the relevant clause on “bribing others to withdraw tenders” to include bid-rigging and private housing estates.

When asked whether the government might forcibly acquire some Hong Fu Court owners’ rights, and whether this would violate the protections of private property under the Basic Law, Maurice Liao responded that from a constitutional perspective, the key is that the acquisition price must be reasonable. “(The main principle) the court considers is whether the scheme is fair and reasonable, and an important part of this is whether the acquisition aligns with market value. Living on a single floor is not just about money; there are emotional attachments.”

Regarding whether the independent committee should be changed to an investigative nature, summoning key individuals for testimony, Maurice Liao said it is up to the committee to consider, but he believes that the current hearing has substantial evidence and lengthy questioning, which helps uncover the truth.