The devastating fire that occurred yesterday (26 Nov) at Tai Po Wang Fuk Court, the most severe in recent history, has resulted in at least 55 fatalities and nearly 300 people remain unaccounted for, as of noon. Police took action this morning, arresting two directors and one engineering consultant of the implicated building maintenance contractor, “Prestige Construction & Engineering Limited” (宏業建築工程), and sealed its office in San Po Kong to collect evidence. Pulse HK has found that Prestige Construction & Engineering Limited has a long list of wrongdoings, having been involved in corruption cases and repeatedly penalized for violating site safety regulations. Furthermore, the Construction company was among the nominators for the Business and Professionals Alliance for Hong Kong (BPAHK)’s Southern District Councillor, Howard Chao, in the Legislative Council’s Real Estate and Construction functional constituency election.
︱Involved in Bribing Housing Society Staff; Repeatedly Violated Site Safety
Established in 2004, the most sensational scandal involving Prestige Construction occurred in 2007. Cao Deguang(曹德光), a former shareholder of the company, was involved in a private building renovation corruption case in Yuen Long. The case alleged that he bribed Housing Society staff in exchange for securing consulting services for three private building projects. Cao was eventually convicted and sentenced to 18 months in prison.
Beyond corruption, a 2017 investigative report by FactWire specifically named Prestige Construction as allegedly participating in bid-rigging, conspiring with other construction companies to fix prices, making it difficult for Owners’ Corporations and property owners to determine reasonable market rates, thus severely damaging owners’ rights.
In addition to integrity issues, Prestige Construction’s safety record during construction is also poor. Since 2016, the company has committed at least 17 violations and been fined a total of nearly HK$340,000. The maintenance project at Ning Yeung Terrace in Mid-Levels alone accounted for seven violations, mostly related to failing to supervise workers in implementing safety measures. In 2016, Prestige Construction was also prosecuted and fined by the Environmental Protection Department for illegally discharging sewage into a storm drain at a construction site in Repulse Bay.
︱Former Owners’ Corporation Approved Sky-High Priced Contract; Started Work Before License Renewal
The severe violations at Ning Yeung Terrace led to disciplinary action against Prestige Construction by the Buildings Department in August 2023. By January 2024, when Wang Fuk Court was preparing to award the maintenance contract, Prestige Construction’s license renewal application was still suspended by the Buildings Department due to disciplinary issues.
Despite this, the then-Owners’ Corporation, which had DAB District Councillor Peggie Wong Pik-kiu as its consultant, still supported the employment of Prestige Construction for the estate’s maintenance project. The project cost was as high as HK$330 million, requiring each owner to pay a total of HK$160,000 to HK$190,000 in maintenance fees across six installments.
Regarding the contractor’s license problem, the Owners’ Corporation argued at the time: “Even if the contractor has incident records listed by the Buildings Department, it does not mean they cannot undertake the estate’s project,” and even claimed that “it is not ruled out that the license information will be updated to normal very soon.”
Last August, Wong Pik-kiu posted on social media criticizing Democratic Party member Winfield Chong Wing-fai for “instigating live broadcasts of estate maintenance matters, spreading alarmist statements,” and asserted that the maintenance work was proceeding “in full swing.” She stressed the need to “unite and support the current Owners’ Corporation to remain in office to stably complete the major renovation.”
The DAB issued a statement on social media last night, claiming that “untrue smear statements” were appearing online against the party. They clarified that they had never participated in the tendering or any related engineering matters concerning the Wang Fuk Court major maintenance. The post received over 2,000 comments, with many netizens suggesting the party was “using and discarding” Wong Pik-kiu. Wong Pik-kiu, when interviewed by i-Cable News this morning, said she was “inconvenient to comment” as she was unaware of the latest progress of the project.
Since the construction began, residents have constantly criticized Prestige Construction’s management, including workers randomly tossing cigarette butts, and damage such as cracked interior walls or collapsed ceilings caused by drilling on the external walls. Earlier, some residents had already expressed concerns about the contractor’s practice of sealing windows with foam boards, fearing fire risks. The Director of Fire Services confirmed after the disaster that this type of foam board is highly flammable and was one of the reasons for the rapid spread of the fire, calling the practice of sealing windows with foam boards “unusual.”
A self-proclaimed resident of Yee Lok Garden in Tuen Mun posted on the Threads platform, stating that the maintenance project for their estate was also contracted to Prestige Construction. He uploaded a video testing the fire resistance of the scaffolding safety net, which quickly burned down upon ignition. He expressed deep worry about the situation.