Corruption uncovered in CK Asset Holdings’ Anderson Road project still under construction, 10 arrested

21st May 2025 – (Hong Kong) The Independent Commission Against Corruption (ICAC) announced today that it will provide details regarding a corruption case linked to a residential construction project. The investigation centres on a subcontractor allegedly bribing engineering supervisors in exchange for lax oversight of steel reinforcement work. This case involves the still-under-construction Anderson Road project by CK Asset Holdings, specifically the “First Home Ownership Scheme” flats in Kwun Tong.

The ICAC revealed that the investigation has uncovered serious allegations of corruption within the construction site. The project, which is slated to include six residential blocks and nearly 3,000 units, has been marked for 1,000 of these units to be designated as affordable housing.

Reports from last October indicated structural issues at the site, with one building reportedly missing at least four steel bars. The Buildings Department confirmed that it received public complaints and, at the end of September, verified inconsistencies in the steel reinforcement layout of six beams, prompting it to require a report from the structural engineer and registered contractor before work could resume.

In response to these allegations, CK Asset Holdings stated that the steelwork and reinforcement processes were ongoing and had not been completed. The company has tasked its consulting team to investigate and address the discrepancies, assuring that it remains committed to ensuring the safety of the buildings.

CK Asset has faced at least two rejections for pre-sale consent applications for this project, with the most recent denial occurring in December, based on the inability to meet lease conditions. The project is projected to be completed by 30th September, 2026.

Last week, the Independent Commission Against Corruption (ICAC) announced the successful operation that resulted in the arrest of 10 individuals. Among those apprehended were one senior employee, five subcontractor owners and employees, and four on-site supervisors from engineering consultancy firms. They are suspected of providing bribes to personnel supervising the construction projects in exchange for lenient oversight, resulting in discrepancies in the reinforcement bar work, including reduced quantity, lax installation, displacement, and absence of certain bars. The Buildings Department noted that the shortage of reinforcement bars was less than 10%, posing no compromise to structural integrity, yet the contractors were instructed to dismantle and reinstall some components.

The ICAC revealed the breakthrough in a corruption and falsification case concerning a residential development construction site in Kwun Tong. The subcontractors allegedly bribed the project supervisor to relax monitoring on reinforcement bar works that did not adhere to the engineering specifications.

Last week, the ICAC initiated operations leading to the arrest of ten men aged between 29 and 52, suspected of committing offences such as corruption, bribery, conspiracy to defraud, and using false documents. The detainees include a senior employee, five subcontractor owners and employees, and four on-site supervisors from engineering consultancy companies. During the operations, the ICAC visited the offices of the companies involved and the residences of the individuals implicated, seizing a substantial amount of engineering documents, including procurement records for building materials, payroll records, and quality inspection reports.

The ICAC suspects that certain subcontractors, aiming to boost profits, deviated from construction plans to cut costs. Through corrupt practices like bribery, they allegedly offered incentives to supervision staff to overlook discrepancies in the quality of reinforcement bar works. These actions led to lenient oversight, allowing construction work that did not align with the engineering plans.