A renovation contract worth over $38 million was secured through fraud, leading to the deaths of 168 people in Hong Kong’s deadliest fire in decades. An independent committee, investigating the November blaze at Wang Fuk Court, heard arguments Friday detailing how improper practices and regulatory evasion turned a small fire into a tragedy. Thousands of residents remain displaced, many now living in temporary housing.
Committee lead lawyer Victor Dawes stated that non-fire-retardant scaffolding netting was very likely a key reason for the fire’s rapid spread. The apartment complex was undergoing a major renovation when the fire started less than one year ago. Wooden planks boarding up staircase windows trapped plumes of smoke, blocking escape routes for residents.
The Price of Profit
Will Power Architects Company, a consultancy, and Prestige Construction & Engineering Co., the main contractor, are accused of cutting corners on work and materials. They allegedly deceived regulators and homeowners. Various substandard practices were involved, including faked compliance inspections. Certain professionals responsible for inspections signed documents like a “rubber stamp,” Dawes said.
Authorities charged seven individuals, alongside Will Power and Prestige, last month with offenses including manslaughter and conspiracy to defraud. Prosecutors allege the two companies and some defendants conspired to defraud apartment owners by concealing Prestige’s previous litigation records. They also inflated the firm’s score in a tender analysis report, which ultimately led to Prestige being awarded the lucrative renovation project.
Dawes confirmed that bid-rigging is common in the city. He stated that the situation at Wang Fuk Court was not an isolated case, indicating a systemic problem rather than an anomaly. The tragedy, he explained, cannot be attributed to one simple reason; the problems are deeply intertwined.
The State's Complicity
Dawes criticized the government’s reliance on an “honor system” for project oversight. He argued that relevant departments should bear part of the responsibility. “When faced with dishonest bad actors, the entire system collapsed,” he said.
Jenkin Suen, representing the government, acknowledged some systemic vulnerabilities. However, he argued it would be unfair to label government departments as instigators of the fire. Suen claimed that some professionals and contractors abused a mechanism designed to protect the public, betraying the trust placed in them. Lee Kwok-hung, who lost his mother and her two domestic helpers, questioned the government’s claims of deception. He asked, “What kind of salary are they earning? And they were hired just to be deceived by people?”
Jeffrey Tam, a lawyer for nine residents, noted that some witnesses appeared to be shirking responsibility during their testimony. He understood why residents could not hold back their anger, adding that deflecting responsibility would not help the city uncover the truth. The investigating committee, led by High Court judge David Lok, is expected to give recommendations after reviewing the fire’s cause, potential systemic problems, and the sufficiency of existing regulations and penalties. Its scope does not include possible legal liabilities, which law enforcement authorities will handle.
Residents Demand Answers
Residents wept during and after the hearing for closing statements, which concluded Friday. Yip Ka-kui, whose wife died in the fire, expressed emotion, feeling that Dawes had tried his best to seek answers. However, he stated that arguments from the government’s lawyer a day earlier showed government departments had not learned a lesson. “Even in the face of such a massive disaster, they cannot bring themselves to take bold and decisive action to completely root out these long-standing bad practices,” Yip said.