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Following is a question by the Hon Tam Yiu-chung and a written reply by the Secretary for Home Affairs, Mr Tsang Tak-sing, in the Legislative Council today (May 22):
Question:
Since June 30 last year, the authorities have fully implemented the Mandatory Building Inspection Scheme and Mandatory Window Inspection Scheme (which are applicable to buildings aged 30 years or above and buildings aged 10 years or above respectively), and have been providing subsidies and technical support to the owners of dilapidated buildings through "Operation Building Bright" launched by the Urban Renewal Authority (URA) and Hong Kong Housing Society (HKHS). Yet, quite a number of members of the local communities have relayed to me recently that the enormous commercial interests arising from mandatory building inspection, window inspection and the associated maintenance and renovation works (the relevant works) have resulted in some people profiteering through manipulation of the election and operation of owners' corporations (OCs), but the Home Affairs Department (HAD), which is responsible for assisting the operation of OCs, takes no heed of the situation. In this connection, will the Government inform this Council:
(a) of the number of cases involving disputes in the operation and election of OCs received by HAD since June 30 last year, as well as the types of such disputes; whether HAD has initiated any mediation; if it has, of the number of mediated cases; if not, the reasons for that;
(b) of the respective numbers of complaints or reports involving tender exercises for the relevant works received by the Police and the Independent Commission Against Corruption (ICAC) since June 30 last year, as well as the respective numbers of cases in which prosecutions have been instituted against the relevant persons; and
(c) whether HAD, ICAC as well as URA and HKHS, responsible for implementing "Operation Building Bright", have put in place comprehensive monitoring systems to prevent law-breakers from profiteering in the relevant works through manipulating the elections of OCs; if they have, of the details; if not, the reasons for that?
Reply:
President,
Building management is the responsibility of property owners. To ensure good and proper management of the building, active participation of owners in the work of building management is essential. The Administration also supports the owners through multi-pronged measures to encourage and assist them to form owners' corporations (OCs) in accordance with the Building Management Ordinance (BMO) (Cap 344). The OC possesses an independent status and the requisite powers of a corporate body. Under the BMO, an OC is empowered to act on behalf of the owners to handle matters relating to building management, while owners are also empowered to monitor the operation of the OC and its Management Committee (MC). According to the BMO, it is the duty of an OC to elect and appoint its MC. Owners should proactively participate in the election to elect suitable persons to carry out the functions of the OC.
The Home Affairs Department (HAD) and its District Offices (DOs) have been making efforts in offering advice and support to OCs in order to facilitate owners to perform building management duties in compliance with the BMO. However, the HAD is in no position to take up the responsibilities of monitoring the OCs or managing the buildings on behalf of the owners. Furthermore, the HAD and its staff are not empowered by the BMO to adjudicate on such matters as OC elections and enforcement of the BMO or provisions in the deed of mutual covenant. According to the BMO, the jurisdiction over building management matters vested in the Lands Tribunal.
My reply to the Hon TAM's question is as follows:
(a) During July 1, 2012 to March 31, 2013, the HAD received a total of 458 cases which involved disputes over OCs' operations and elections, the breakdown of which is as follows:
Type of Disputes Number of Cases
Building Maintenance 142
Financial Management 114
Performance of Management Companies/
the MCs of the OCs 163
Building Security Management 10
MCs' Election 29
DOs will try their very best to render assistance to OCs and owners to resolve disputes in a fair and impartial manner. Efforts will be made to arrange negotiation meetings for the parties in dispute. Where necessary, they will also be advised to meet experts (including lawyers, accountants and surveyors) of the Panel of Advisors on Building Management Disputes, a body specially set up by the HAD to assist in resolving building management disputes by rendering authoritative and impartial advice. If both sides agree, the DOs shall refer them to a voluntary professional mediation service scheme launched by the Hong Kong Mediation Council and the Hong Kong Mediation Centre for free professional mediation services.
In case the disputes remain unresolved, the DOs shall suggest the OCs or the owners concerned to seek legal advice and convene a general OC meeting at the request of not less than 5% of the owners under the BMO. An alternative is to refer such unresolved disputes to the Lands Tribunal for adjudication.
(b) The Police and the Independent Commission Against Corruption (ICAC) indicated that they did not maintain any relevant information on complaints or reports involving tender exercises for the relevant works. Nevertheless, from June 30, 2012 to April 30, 2013, the ICAC received a total of 282 corruption complaints involving building maintenance and renovation projects. No prosecution has been made so far.
(c) As mentioned above, an OC is an independent body corporate and its MC is elected in accordance with the procedures stipulated under the BMO. Owners who are of the view that the OC election is in contravention of the BMO may file their case to the Lands Tribunal for adjudication. OCs or owners may also report to the Police cases suspected of involving criminal conduct.
The Development Bureau (DEVB), which is responsible for the Operation Building Bright (OBB), Mandatory Building Inspection Scheme (MBIS) and Mandatory Window Inspection Scheme (MWIS), indicated that since the OBB was launched in May 2009, the Hong Kong Housing Society (HKHS), the Urban Renewal Authority (URA) and the Buildings Department (BD) have been working closely with the ICAC, and have issued the "Operation Building Bright Maintenance Guidelines" for reference by OCs, consultants and contractors. The Guidelines stipulate the requirements and procedures for the recruitment, selection and management of consultants and contractors, anti-bribery and anti-collusion practices as well as the details on the various roles and responsibilities of different parties involved in OBB maintenance works. The Guidelines also require the Authorised Persons (AP) and their consultancy company to sign undertakings against malpractices including tender rigging. The ICAC, in collaboration with the HKHS and the URA, organised 18 talks for OCs, maintenance consultants and contractors and reached out to 587 OCs and 161 consultants/contractors to enhance their understanding of the anti-bribery legislation, the corruption risks pertaining to building maintenance projects, anti-corruption measures and ways to implement integrity building management.
Regarding the MBIS and the MWIS, the DEVB indicated that BD had issued a Practice Note providing advice on the best practices on tendering procedures for the appointment of Registered Inspectors (RIs), Qualified Persons (QPs) and Registered Contractors under the two Schemes. The HKHS and the URA will also provide support to owners taking part in the Schemes, including guidance on anti-bribery and anti-rigging practices in tendering, such as requiring RIs and contractors to sign an undertaking to comply with probity and anti-tender rigging clauses when submitting a tender, and to submit a declaration on compliance with ethical commitment clauses upon confirmation of appointment. The BD, the URA and the HKHS will continuously remind building owners and OCs to comply with the best practices on tendering procedures and promote anti-bribery measures through publicity and public education efforts.
In addition, between 2008 and 2010, the ICAC implemented a three-year integrity and quality building management programme, covering areas of building management, financial management and daily operation, and launched a series of publicity and educational materials (e.g. practical toolkits, training videos, thematic webpages and TV spot series) with a view to enhancing the prevention and integrity management capabilities of OCs. The ICAC also organised a series of publicity and educational activities in collaboration with 18 Districts Councils. Messages of integrity and quality building management were promoted through the mass media, roving exhibitions, workshops and publicity activities jointly organised with various district organisations. The ICAC will also fine-tune the Building Management Toolkit having regard to the experience gained in the management of the OBB and explore ways with relevant stakeholders to enhance transparency of market information on renovation rates.
The ICAC also indicated that if corruption complaints were received, it would deploy resources in a flexible manner to investigate in accordance with the established procedures and having regard to the seriousness of the relevant complaints.
Ends/Wednesday, May 22, 2013
Issued at HKT 17:58
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