HONG KONG: The former Director of Civil Engineering and Development Tsao Tak-kiang has been arrested by the anti-graft watchdog for alleged corruption concerning the tendering and administration of Highways Department contracts.

The Independent Commission Against Corruption confirmed Friday that it arrested 20 individuals last month, including five officers of the Highways Department and a former senior directorate government officer.

The former officer had joined a construction company as a senior executive after leaving government service in 2005. It is alleged that he had attempted to exert undue influence on Highways Department senior officers to affect removal of an engineer from his post. The allegation charges that the former official hoped to evade proper supervision of work conducted by his company.

The five arrested officers of the Highways Department include a chief engineer, a senior engineer, and three inspectors. Four other senior executives of three construction companies, nine subcontractors and one other person were also arrested.

It is alleged that government staff had accepted advantages from subcontractors and construction companies engaged in road maintenance work.

The Highways Department staff members also are accused of disclosing tendering information and confidential documents to subcontractors and construction companies and that they assisted those companies to secure works contracts.

The senior engineer and one subcontractor were arrested following an alleged corrupt transaction involving an envelope containing HK$20,000 cash, which later was seized by authorities from the engineer.

A spokesman for the Highways Department said the department will cooperate with the ICAC in the investigation. The department also has suspended from duty all staff members who have come under suspicion and reinforced audits on the related public works contracts.

The spokesman said the companies involved will also be investigated, and may be subject to regulatory sanctions, which include the potential for banning them from tendering for public works contracts.

"The department will not tolerate any malversation committed by staff members. Any staff member who is convicted of such offences will be subject to disciplinary proceedings which may include termination of employment," the spokesman said.

(HK Edition 04/04/2009 page1)