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Anti-Corruption Laws in Hong Kong

Private Sector Corruption

Self Photos / Files - 3-2-2-1 In Hong Kong, corruption in the private sector is governed by Section 9 of the POBO. Business organisations and their employees must comply with the POBO when conducting the company’s business or affairs.

Section 9(1) of the POBO – Agent accepting bribes

1 Agent (a company staff member) Agent means any person acting for or employed by the principal Agent can be a director, a consultant or a staff member of any level who is given the authority or responsibility to act on behalf of the principal in dealing with the principal’s affairs	2 Advantage (receives money from a supplier) Accepting advantage: Advantage means any gift, loan, fee, reward or commission, employment, contract, service, favour, payment, release or discharge of loan or liability, etc. (entertainment excluded)
3 Approval (no company approval for accepting advantage) Principal’s approval generally means approval from the employer (e.g. the owner or the board of directors of a company) Employees should obtain permission from his/her employer for accepting a work-related advantage	4 Act (awards a contract to the supplier) An Act in relation to principal’s business (e.g. awarding a contract to a supplier)

QDoes the above employee violate Section 9 of the POBO?

Yes, the above employee violates Section 9(1) of the POBO because he is an agent (i.e. employee), who without the approval from his principal (i.e. employer), accepts an advantage (i.e. money) from a supplier as an inducement for doing an act in relation to his principal’s business (i.e. awarding a contract to the supplier).

3 Quick tips for employees

Obtain principal’s permissions and follow your company’s policies on acceptance of work-related advantages

Seek advices and clarifications from your company when in doubt

Avoid “sweetener” and report attempted bribery

Section 9(2) of the POBO – Offering bribes to agent

1 Any person (an outsider) Any person (e.g. contractor, supplier, customer, etc. ) offering advantage to an agent	2 Act (ask the employee to release clients' information) An Act in relation to principal’s business (e.g. releasing clients’ database)
3 Advantage (the outsider gives money to the employee) Advantage means any gift, loan, fee, reward or commission, employment, contract, service, favour, payment, release or discharge of loan or liability, etc. (entertainment excluded)	4 Approval (no company's approval for accepting advantage) Agent should obtain permission from his/her employer for accepting a work-related advantage Approval should be obtained from the principal of the recipient, not the principal of the offeror

QDoes the above outsider violate Section 9 of the POBO?

Yes, the outsider who violates Section 9(2) of the POBO because he offers money (i.e. advantages) to the employee (i.e. agent) as a reward for the employee to release clients’ database of the company (i.e. an act in relation to principal’s business) while the employee has no approval from his employer (i.e. without the approval of the recipient’s principal) for accepting such advantage.

3 Quick tips for business operators or representatives:

Check with your clients to make sure the offering of advantages e.g. incentive, sponsorship, commission, etc. is legitimate

Don’t bribe for short cuts

Uphold business ethics when doing business

Section 9(3) of the POBO – Agent using false documents to deceive principal

1 Agent (an employee) Agent means any person acting for or employed by the principal Agent can be a director, a consultant or a staff member of any level who is given the authority or responsibility to act on behalf of the principal in dealing with the principal’s affairs	2 False document (overstates overtime(OT) working hours in claim form) Uses false / erroneous / defective receipt, account or other document

3 With an intent to deceive principal (submits false claim form to deceive OT payment) With an intent to deceive his/her principal (e.g. employer)

QDoes the above employee violate Section 9(3) of the POBO?

Yes. The above employee, who submits the overtime (OT) claim application form containing false information with the intention to deceive extra OT payment from his employer, will violate Section 9(3) of the POBO.

3 Quick tips for employees

Don’t use false receipts, accounts and documents to deceive your employer

Check for accuracy before endorsing or submitting documents to your employer

Report to your employer when you come across any suspected false receipts, accounts and documents

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