Government releases report of Independent Committee in relation to fire at Wang Fuk Court in Tai Po, launches reforms and disciplinary investigation under public service regulations

     The Government today (October 29) released the report of the Independent Committee in relation to the fire at Wang Fuk Court in Tai Po.

     The Independent Committee submitted its report to the Government on October 22. The Chief Executive sincerely thanked the Chairman of the Independent Committee, Mr Justice David Lok, members Mr Chan Kin-por and Dr Rex Auyeung, as well as relevant personnel of the Independent Committee for their tireless efforts over the past 10 months in completing the report and providing detailed recommendations.

     The Independent Committee's comprehensive and in-depth report highlighted the following key points:

1. The suspected substitution of fire-retardant scaffolding nets with non-fire-retardant ones, the use of non-fire-retardant foam boards and other flammable materials during the works, as well as such acts as creating access openings in the escape staircases for convenience led to the rapid spread of the fire and the high casualties.

2. The long-standing regulatory system for building maintenance and renovation relies heavily on the integrity and professional conduct of industry professionals and contractors in fulfilling supervisory or management responsibilities. However, certain professionals and contractors are suspected of abandoning their responsibilities, rendering the supervision and management effectively non-existent.

3. There were deficiencies and failings in the relevant Government departments (the Independent Checking Unit, the Buildings Department, the Fire Services Department and the Labour Department) with regulatory duties. The report detailed the deficiencies and failings of four relevant departments.

4. As building maintenance and renovation projects involve substantial sums of money, they have become targets of triads and criminals seeking illicit gains. These triads and criminals form syndicates to rig bids and monopolise the market through intimidation, fraud and corruption.

     The Independent Committee put forward numerous recommendations to improve the current system, enhance regulatory functions of the Government, strengthen legal regulation and so on.

     To prevent the recurrence of similar incidents, the Government will conduct a full-process review and implement systemic reforms at every step and in every critical juncture involved in building maintenance and renovation. The Government will launch comprehensive reforms on the basis of the report's recommendations, with key considerations including:

1. Bid-rigging is the root of the problems in building maintenance and renovation. The report pointed out that individuals of questionable backgrounds, including triad members, had manipulated tender outcomes and conspired with consultants, professionals, contractors and so on to commit fraud and corruption.

2. The Mandatory Building Inspection Scheme has deficiencies that need to be addressed through reform. The prevailing Mandatory Building Inspection Scheme introduced by the Government and enacted by the Legislative Council was implemented 14 years ago in 2012. Its original intent is to impose clear responsibilities for the safety and quality control of works on professionals and contractors, while the Government sets standards; keeps registers; conducts audits, spot-checks and inspections; and takes enforcement action against violations. Therefore, the reform must target both parties: professionals and contractors must strictly fulfil their duties, and Government departments must rigorously perform their supervisory, inspection and law enforcement duties.

3. Support services for building maintenance and renovation provided to the public must be impartial and reliable. They should offer sufficient information and credible professional advice to help owners make informed decisions, protecting them from lawbreakers' fraud and deception due to their lack of professional knowledge in the matter.

     Taking into account the above considerations and based on the recommendations of the Independent Committee's report, the Government will implement a comprehensive and systemic reform, including:

(1)  Legislate to prohibit bid-rigging in building maintenance and renovation projects 

     The Government will introduce a criminal offence targeting bid-rigging in building maintenance and renovation projects, and will bring it within the scope of the existing Organized and Serious Crimes Ordinance. Law enforcement agencies may exercise statutory powers under the Organized and Serious Crimes Ordinance to compel suspects to attend and answer questions, require the furnishing of information or materials, freeze assets and confiscate proceeds of crime. The courts may also impose substantially increased penalties having regard to the gravity of the circumstances of the case, the nature and extent of harm caused to the community, or the prevalence of the crime. The offences will also be incorporated into the existing Independent Commission Against Corruption Ordinance such that the Independent Commission Against Corruption (ICAC) may exercise its statutory powers in relation to the offences when there is corruption element. The Government will amend the Competition Ordinance to empower the Competition Commission to adopt a dual-track approach involving both criminal and civil enforcement, enabling it to combat bid-rigging in building maintenance and renovation projects flexibly according to the circumstances of each case.

(2) Establish a cross-departmental task force to combat crimes relevant to bid-rigging

     The Government will establish a joint task force against bid-rigging in building maintenance and renovation projects. It will comprise members from the Police, the ICAC and the Competition Commission. Harnessing the enforcement powers of the respective agencies to take proactive actions, the task force will launch joint investigations or provide mutual support to strengthen deterrence and enhance intelligence gathering and exchanges.

(3) Establish a Building Maintenance Support and Services Council

     The Government will establish a Building Maintenance Support and Services Council that provides independent, reliable and professional support and services on maintenance and renovation. The Council will be set up in the form of a company wholly owned by the Financial Secretary Incorporated. It will gradually take over the services relevant to building maintenance and renovation currently provided by the Urban Renewal Authority, with the aim of commencing operation by the end of the year. 

     The Council will proactively and rigorously provide support and services in various stages of building maintenance and renovation. Services designed to provide reliable assistance to owners in fulfilling their maintenance responsibilities and gatekeep for owners include compiling and managing "pre-qualified lists" of consultants and contractors; directly assigning Inspection Consultants to owners; handling tender invitations and assessments on behalf of owners in the appointment of Supervision Consultants and Contractors; regularly reviewing performance, ensuring Supervision Consultants duly monitor project quality; offering independent advice at key milestones after the commencement of works and so on.

     In accordance with its earlier plan, the Government will make three "pre-qualified lists" (on Inspection Consultants, Supervision Consultants and Building Works Contractors) available progressively by the end of the year, begin assigning Inspection Consultants to owners from the coming January, and assist owners with project tendering in the first quarter of 2027.

(4) Reform the operation and regulatory system for building maintenance and renovation

     The Government will reform the work process, delineation of authorities and duties, works approval, and regulation of professionals and contractors for building maintenance and renovation, so as to break the chain of interests and enhance penalties.

     By the end of the year, the Government will submit to the Legislative Council proposals to amend the Buildings Ordinance. These include the creation of a new works category for large-scale building maintenance and renovation, which will put them under more stringent regulation and stricter penalties, underlining a proactive regulatory approach by the Department in place of the overreliance on industry self-regulation. The amendments will also strengthen the regulatory regime for independent audit and inspection, substantially increase the maximum fines for non-compliance, introduce new offences, and enhance building and fire safety standards.

     The Government will set up an Expert Panel on Major Building Maintenance, to be led by the Development Bureau and comprising prominent members of the industry as well as experts from the engineering sector and academia. The Expert Panel will assist in finalising the overarching standards, principles and guidelines for major building maintenance and renovation projects, and study the recommendations of the Independent Committee involving technical aspects of building maintenance and renovation.

(5) Reform the structure of regulatory departments

     The Buildings Department (BD) will revamp its organisational structure by establishing two divisions, namely the New Buildings Division and the Existing Buildings Division, to strengthen senior leadership and co-ordination capabilities. The BD will also establish a "District Chief" system to strengthen regulation of existing buildings, under which the territory will be divided into 10 districts. Officers of the BD will take up the roles of "District Chiefs" leading 10 district teams of in-house professional and technical officers. Apart from keeping track of the conditions of existing buildings in the 10 respective districts, the district teams will also be responsible for enforcement and regulatory work under the Buildings Ordinance, including the end-to-end monitoring of various stages of works in buildings issued with mandatory building inspection notices. Each "District Chief" will, as convenor, lead an interdepartmental task force including representatives from the Housing Bureau, the Fire Services Department, the Labour Department and so on, to promote interdepartmental communication and collaboration in such areas as site inspection and complaint handling for Mandatory Building Inspection Scheme projects in the districts. In addition, the BD will establish a Dedicated Audit and Monitoring Section, which reports directly to the Director of Buildings, to independently audit the work of the BD and the enforcement work carried out under delegated authority by the Public Housing Building Control Section to be established by the Housing Bureau, thereby strengthening internal performance monitoring.

     The Housing Bureau will undergo internal restructuring and reform its Independent Checking Unit by replacing it with the Public Housing Building Control Section, to be underpinned by the New Development Sub-section and the Existing Building Control Sub-section. The Public Housing Building Control Section will implement a new regulatory regime by operating on a project basis, so as to co-ordinate and handle the regulation of major building maintenance and renovation projects of individual housing courts in an integrated manner.

     The Fire Services Department will revamp its organisational structure by establishing a new Major Fire Prevention and Control Command, which will focus on formulating dedicated contingency plans for high-risk scenarios, monitoring and controlling fire risks in buildings undergoing major building maintenance and renovation works, and co-ordinating technology measures for fire safety.

     The Labour Department will enhance occupational safety in major building maintenance and renovation projects, and formulate strategies on inspection frequencies and enforcement based on risk levels, having regard to factors such as past records and the number of complaints.

(6) Establish a centralised data system and reform the complaint mechanism

     The Government will establish a cross-departmental centralised data system for information-sharing among departments in safety information on building maintenance and renovation works, convictions for non-compliance, and records on professional conduct. It will also reform the existing complaint mechanism for building maintenance and renovation projects. Under the reformed mechanism, complaints relating to building maintenance and renovation will be uploaded to the centralised data system and artificial intelligence will be used to analyse and monitor the progress and outcomes of the complaints, particularly repeat complaints concerning the same issues, locations, companies or individuals, to ensure that public complaints are properly handled.

(7) Establish a steering committee led by the Chief Secretary for Administration

     The Independent Committee's report contains numerous concrete recommendations to prevent the recurrence of similar incidents. The Government will establish a steering committee led by the Chief Secretary for Administration to review each of the Independent Committee's recommendations, drive and monitor the implementation of measures, in particular the submission of proposed legislative amendments to six pieces of legislation to the Legislative Council. These proposed amendments include amendments to three ordinances to reform the system for building maintenance and renovation, including the Buildings Ordinance on building maintenance and renovation, the Building Management Ordinance on building management and the Fire Services Ordinance, as well as amendments to three ordinances to combat bid-rigging in building maintenance and renovation projects, namely the Competition Ordinance, the Organized and Serious Crimes Ordinance and the Independent Commission Against Corruption Ordinance. The Government will submit the proposals to the Legislative Council within this year, seeking to secure the latter's scrutiny and passage of the amendments as soon as possible.

     The Government will hold two thematic press conferences tomorrow (October 30) focusing respectively on combating bid-rigging and reforming the building maintenance regime to announce the detailed information on both topics. 

     The Government will strictly pursue accountability among those responsible in the incident.

     On the criminal front, to date, the Police and the ICAC have initiated prosecution against seven individuals and two companies involving a total of 25 charges, including suspected manslaughter, conspiracy to defraud and attempting to pervert the course of justice; the Labour Department has initiated prosecution against parties including a contractor and a project consultant involved for a total of 25 offences regarding suspected contraventions of occupational safety and health legislation; the Buildings Department has laid a total of 259 summonses against four individuals and two companies for various contraventions including the suspected use of materials which do not comply with the relevant provisions; the Fire Services Department has taken out prosecution against an individual and two companies for a total of 12 offences, including those for suspected contraventions of the Fire Service (Installations and Equipment) Regulations.

     The Independent Committee's report also identified deficiencies and failings in relevant Government departments (the Independent Checking Unit, the Buildings Department, the Fire Services Department and the Labour Department) in discharging their duties and responsibilities relating to the oversight of the fire risks associated with the works at Wang Fuk Court. The Chief Executive has decided to activate the Administrative Responsibility Two-tier Investigation Mechanism under the Heads of Department Accountability System and, pursuant to the Public Service Commission (Investigation) Regulation (Cap. 93B), refer to the Public Service Commission to conduct an investigation into the alleged deficiencies and failings of the civil servants concerned. The investigation shall be completed within three months, and cover matters set out in the Terms of Reference below:

(1) With reference to the deficiencies and failings of the relevant departments (the Independent Checking Unit, the Buildings Department, the Fire Services Department and the Labour Department) in discharging their duties and responsibilities relating to the oversight of the fire risks associated with the works at Wang Fuk Court as pointed out in the report, to collect evidence and investigate into the responsibilities of the officers concerned on the individual level, and to inquire whether they had failed their duties and contravened relevant departmental guidelines, the Civil Service Code and civil service administrative regulations.

(2) Based on the evidence and facts collected, to provide advice to the Government for consideration on the disciplinary or administrative action that should be taken in respect of the officers with alleged deficiencies or failings in accordance with the relevant departmental guidelines and/or regulations, the Public Service (Administration) Order, the Public Service (Disciplinary) Regulation and other relevant regulations.

     The Government attaches great importance to the recommendations in the Independent Committee's report, and is fully committed to implementing them.

     After the fire, the Government promptly launched a series of reforms and strengthened measures, with priority reform measures announced in the 2026 Policy Address. The Government will implement comprehensive reforms on the basis of the Independent Committee's report.

Priority reform measures announced in the 2026 Policy Address (paragraphs 423 and 424)
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(i) Implement a comprehensive smoking ban on construction sites after legislative amendments to the Construction Sites (Safety) Regulations and related anti-smoking legislation.

(ii) Embark on the amendment of the Fire Services Ordinance to enhance regulation on fire service installations and equipment and their contractors, introduce the fire service installations responsible persons' regime, raise penalties and expand the enforcement powers of the Fire Services Department, with an aim to submit relevant proposals to the Legislative Council this year.

(iii) Expand the scope of amendments to the Buildings Ordinance, including the enhancement of the statutory control regime for major building maintenance works, imposing more stringent regulation and heavier penalties, and tightening the disciplinary mechanism for professionals and contractors to impose stringent penalties on non-compliance. The relevant proposals will be submitted to the Legislative Council this year.

(iv) Take forward legislative amendments to the Building Management Ordinance to impose a higher attendance requirement and voting threshold for decisions on large-scale maintenance procurement, improve the system for proxy instruments and optimise the system for declaration of interests. The relevant public consultation has been completed, with the target of submitting the proposal to the Legislative Council this year.

(v) Conduct a legal study on the criminalisation of bid-rigging in major building maintenance works and submit the relevant proposal to the Legislative Council this year.

(vi) Launch, for the first time, tender invitation and evaluation services for owners in engaging consultants and contractors.

(vii) Establish more rigorously vetted "pre-qualified lists" of consultants and contractors to complement owners' support services, including conducting background checks by law enforcement agencies.

(viii) Look into feasible options to better assist members of the public in handling matters involving professional knowledge in major building maintenance.

     Based on the legal advice from the Department of Justice, the Government has redacted some of the contents in the Independent Committee's report that may concern the relevant criminal proceedings to avoid prejudicing the same and safeguard a fair trial. This is consistent with the Government's previous practice in publishing reports of similar independent investigations. The public can view the redacted report on the Government website (www.gov.hk/en/residents/government/policy/government_reports/reports_index.htm). The Government will release the full report after the relevant criminal investigations and legal proceedings have been concluded.

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