Buildings Department has prosecuted Leighton Zhengyan MTR Responsible Member: Project management fee should be refused

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Written by: Chen Jingqi

2020-06-03 19:33

A series of engineering problems have been revealed in the Hung Hom Station of the Shazhong Line since 2018. The final report issued by the Independent Commission of Inquiry last month ruled that MTR and Leighton shall be responsible for serious errors in their respective management and monitoring systems. The Secretary for Transport and Housing, Chen Fan, disclosed today (3rd) that the Buildings Department had prosecuted Leighton under Chapter 123 of the Buildings Ordinance last month; and studied MTR's responsibilities and will follow up on the "Entrustment Agreement" in due course.

A member of the Legislative Council said that the Government should further disclose which article the Buildings Department is currently prosecuting for Leighton; meanwhile, if any fraud is involved in the project, the authorities can refuse to pay MTR the full amount of project management in accordance with the relevant provisions of the Entrustment Agreement Fees and even demand compensation. "Hong Kong 01" has inquired with the Buildings Department about the incident and has yet to reply.

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The Director of Transportation Bureau Chen Fan attended the Legislative Council meeting today and disclosed for the first time that the Buildings Department prosecuted the contractor Leighton in accordance with Chapter 123 of the Buildings Ordinance of the Laws of Hong Kong on May 15 this year; The final report released this month studies MTR’s responsibilities and will follow up on the “Entrustment Agreement” signed by both parties in due course.

However, will Leighton be included in the blacklist of government engineering bidding qualifications and will be prohibited from participating in future government engineering and MTR railway projects. Chen Fan pointed out that the Development Bureau issued a 15-month suspension to Leighton in October 2018. Therefore, the relevant penalties are still in effect and the authorities will continue to study whether there are any new arrangements.

Chen Shuzhuang, a member of the Citizens’ Legislative Council, said the government should further explain which article of the Buildings Ordinance should be used to prosecute Leighton. (Photo by Yu Junliang)

Chen Shuzhuang, a member of the Legislative Council Subcommittee on Railway Matters and the Citizen Party, said that the government should further explain which of the provisions of the Buildings Ordinance is currently being used to prosecute Leighton. At the same time, she does not rule out that other subcontractors will be prosecuted for other conspiracy to defraud and corruption. Chen Shuzhuang pointed out that the government is reviewing the responsibility of the MTR. If the project involves human life or fraud, the authorities can refuse to pay the MTR project management fee in accordance with the relevant provisions of the "Entrustment Agreement" and further recover the losses incurred.

Tian Beichen, the former chairman of the KCRC and a member of the Legislative Council of the Executive Round Table, pointed out that the Development Bureau had already made relevant regulations to Leighton to prohibit them from participating in government works, construction and road works for a total of 15 months. However, he said that at present, railway projects under the MTRCL still accept Leighton bids, and the Government has responded that the MTRCL has decided on its own, saying that it cannot accept its claims.

Tian Beichen: MTR should consider the global bidding plan

Tian Beichen explained that the government is a major shareholder of the MTR and the Development Bureau has fined Leighton for suspension. The MTR should follow the relevant decision. The Development Bureau is now reviewing the final report of the commission of inquiry to determine whether any arrangements will be made for Leighton. He expected that Leighton’s chances of permanently being blacklisted would be less, but it would prolong the ban on bidding for public works projects. He also hoped that the authorities would also ban their bidding qualifications for related companies; MTR considers a global bidding scheme to attract more Contractor bidding.

Tian Beichen, the former chairman of the KCRC and a member of the Legislative Council of the Real Administration Roundtable, expects that the Development Bureau may extend the prohibition of Leighton’s bid for government works projects. (Photo by Yu Junliang)

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