Exclusive｜Sister company wins 210 million government contract during the suspension of the protagonist of the Shazhong line scandal Leighton

01 Investigation

Written by: Chen Jingqi

2021-04-26 07:00

The last update date: 2021-04-26 08:13

The Shazhong Line of the MTR was exposed to project scandals such as steel bar cutting and unauthorized changes to plans. The main contractor "Leighton Construction (Asia)" was banned from bidding for government projects for 21 months.

"Hong Kong 01" found that during Leighton's "penalty suspension", sister company "CPB Contractors" won the bid for a contract of more than 210 million yuan from the Transport Department. He Zhigang, the authorized representative of CPB in Hong Kong, was a director of several Leighton affiliates. The Leighton logo is also printed in the CPB office.

Xian Yongning, director of Leighton Construction (Asia), was asked whether CPB's winning bid during the Leighton suspension period would involve a conflict of interest. He only claimed that "how do you live your life" and asked reporters not to follow up.

According to the Transport Department, the regulation mainly targets the contractors involved and does not apply to companies that are not involved. The Development Bureau stated that, depending on the nature and severity of the case, it will not rule out imposing regulations on other approved contractors of the group involved. Regulation, but no answer criteria.

"Leighton Suspension" series of investigation reports:

Shazhong Line·Exclusive | Leighton’s sister company CPB wins the government’s 210 million contract during the suspension period

Shazhong Line·Exclusive | Leighton Subsidiary Won the Bid Twice, Renamed Multiple Substances Can Be Submitted To Government

▼Revisit the scandal of rebar cutting in the middle of the sand ▼

Leighton suspended for 21 months

Affected by the cutting of steel bars at Hung Hom Station on the Shazhong Line, unauthorized changes to the plan, and the unqualified excavation works at the Convention and Exhibition Station, the opening date of the Tuen Ma Line has been delayed.

In the incident, Leighton Construction (Asia), the main contractor responsible for the construction of the Hung Hom Station on the Shaxi-Central Line, was criticized by the Independent Investigation Committee for "serious failures in the supervision system."

On October 8, 2018, the Development Bureau suspends the bidding qualifications of all the engineering categories registered in the "Leighton Construction (Asia)" approved list for a period of one year; and additionally suspends the company’s bid for the highest bid value of more than 400 million yuan. Construction (Group C) and Road and Drainage (Group C) Engineering Category" for three months.

In the end, Leighton had to submit improvement measures to apply for the "semi-match", and the bidding qualifications were not resumed until July 28 last year, that is, they were "suspended" for a total of 21 months.

▼Relationship between Leighton and CPB▼

Australian sister company wins contract with Transport Department during Leighton suspension

However, "Hong Kong 01" found that during the effective period of the tender suspension period, Leighton, an Australian-registered company "CPB Contractors Pty Limited", successfully won the bid for a contract worth more than 210 million yuan from the Transport Department. The contract number is TD93/2018 "Installation Addition" Traffic detectors, driving speed screens, and driving time display systems".

According to the CPB's winning contract information, the government tender announcement was issued in October 2018 until the tender closing in December of the same year, and the contract involved was awarded on May 30, 2019; the suspension period of Leighton Construction (Asia) is 2018 From October to July 2020, the relevant time overlaps.

In May 2019, the Transport Department approved an engineering contract worth more than 210 million yuan for the "Installation of New Traffic Detectors, Driving Speed ​​Displays, and Driving Time Display Systems". In June of the same year, it signed a contract with a representative of the "CPB Contractors" company.

(Transportation Department)

CPB Hong Kong representative serves as director of six Leighton related companies

"CPB" is a subsidiary of "Leighton Urban Transport Group" (CIMIC Group) and belongs to the same group as "Leighton Construction (Asia)". The official website of Leighton Construction (Asia) also lists "Leighton Asia as a subsidiary of the group. One of the members of CPB Contractors who specializes in construction business in Asia" means that CPB has a close relationship with Leighton.

He Zhigang, the authorized representative of CPB in Hong Kong, is one of the directors of Leighton Asia Limited, which wholly owns Leighton Construction (Asia), and He Zheng serves as a director of at least six companies related to Leighton.

The official website of Leighton Construction (Asia) states that "Leighton Asia is a member of the CPB Contractors of the Group, which specializes in the construction business in Asia." This shows that CPB and Leighton have a close relationship.

(Screenshot of Leighton's official website)

CPB staff: Leighton logo in the same group office

The CPB office in Kwai Chung bears the Leighton logo. CPB staff described the company's relationship with Leighton as if "Wellcome and Mannings" belong to the same group, but pointed out that CPB Hong Kong authorized representative He Zhigang is not in the Kwai Chung office.

The staff of the "Leighton Construction (Asia)" headquarters in Wan Chai admitted that Ho Zhigang was based in the headquarters in Wan Chai, and reporters left information to contact him. He has not received any reply.

▼CPB Kwai Chung office site▼

Director Leighton: You don’t want to chase me

Xian Yongning, another director of Leighton Construction (Asia), was asked whether the CPB won the bid during Leighton’s suspension of bidding. He only pointed out that the relevant contract was not submitted to the Transport Department by himself, and he was also a reporter. "You don't want to chase me", "How can you live!"

▼Leighton Wanchai Headquarters Site▼

The reporter encountered Xian Yongning, another director of Leighton Construction (Asia). During the period when Leighton was suspended, CPB would give the public a perception of a conflict of interest. He only asked the reporter, "You don’t want to chase me." , How can you give birth!” (Photo by Wang Haitu)

Transport Department: only regulates the company involved

Regarding Leighton’s "suspension", is there anything wrong with the sister company winning the bid?

According to the Transport Department, the contract involved employs open tendering to recruit contractors, and bidders can submit tenders as long as they have relevant experience and expertise in designing and constructing traffic detector systems or traffic control and monitoring systems.

According to the current mechanism for managing public works contractors, the regulatory actions are mainly targeted at the contractors involved and do not apply to other companies that are not involved.

The Transport Department's reply to "Hong Kong 01" stated that the regulatory actions were mainly targeted at the contractors involved and did not apply to other companies that were not involved.

(Information Picture/Photographed by Liang Mingkang)

▼The first day of the opening of the first phase of the Tunma Line▼

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Development Bureau: According to the seriousness limit, the same as the group's non-response criterion

The Development Bureau pointed out that, depending on the nature and severity of the case, it would not rule out that it would take regulatory actions against other approved contractors of the group of the contractor involved.

However, "Hong Kong 01" continued to ask whether the scandals on the Shazhong line had reached the "seriousness" described by the authorities and how they could be called "serious" by the authorities.

The Development Bureau pointed out that it is necessary to look at multiple factors and cannot be generalized.

Regarding the construction quality of the Hung Hom Station on the Shazhong Line, the government instructed the Independent Investigation Committee to thoroughly investigate the incident.

In the final report, the committee criticized the main contractor Leighton Construction (Asia) for "serious failures in the supervision system."

(Information Picture/Photographed by Li Zetong)

▼Revisit the exclusive report of the ``01 Investigation'' Sand Middle Line ▼

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Shazhong Line·Exclusive | Leighton Subsidiary Won the Bid Twice, Renamed Multiple Substances Can Be Submitted To Government

Shazhong Line｜Fax Agency Unveiled Leighton Hung Hom Station to buy more than 200,000 screw caps, involving 16 million yuan

[01 Exclusive] Reconstruction of the north tunnel of Hung Hom Station on the Shazhong Line

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