Recent ICAC Cases

20
Oct 2021
Ex-manager of aircraft maintenance company charged by ICAC jailed for $1.5m order fraud

A former manager of an aircraft maintenance company, charged by the ICAC, was today (October 20) sentenced to 27 months’ imprisonment at the District Court after being convicted of fraud over purchase orders for toolings which contained unnecessary technical drawings worth about $1.5 million.

Wu Kwok-man, 65, former production engineering manager of Hong Kong Aircraft Engineering Company Limited (HAECO), was today found guilty of two counts of fraud, contrary to Section 16A(1) of the Theft Ordinance.

In sentencing, Judge Stanley Chan Kwong-chi reprimanded the defendant for breaching the trust placed on him and abusing his power and position in HAECO. The defendant had also wasted the manpower and resources of the company, causing a loss to his former employer.

The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.

The court heard at the material time, HAECO provided aircraft maintenance, repair and overhaul services to its clients. As the head of the component repair team of HAECO, the defendant was responsible for developing, manufacturing and purchasing toolings used in its aircraft maintenance and repair services. Contractors supplying toolings to HAECO were required to manufacture the toolings and provide the relevant technical drawings.

Between February 2015 and October 2016, the defendant had caused HAECO to place 69 purchase orders worth totalling about $2.5 million with two contractors for manufacturing 185 toolings and the supply of the relevant technical drawings.

HAECO received all the toolings but the two contractors could only provide some of the technical drawings. However, the technical drawings of all 185 toolings were subsequently found in HAECO’s internal system.

ICAC enquiries revealed that the defendant had concealed from HAECO that he had instructed his subordinate engineers to design and prepare those technical drawings. The technical drawings submitted by one of the contractors were copied from technical drawings in HAECO’s system provided by the defendant.

HAECO purchased the toolings with the two contractors at prices which included the supply of technical drawings which were not required in the first place. The prices involved amounted to about $1.5 million.

HAECO did not allow the defendant to instruct its engineers to prepare technical drawings for contractors and to supply contractors with the technical drawings which belonged to HAECO. Had HAECO known that the company was in possession of the technical drawings concerned, it would not have placed the orders with the two contractors or settled the relevant payments with them.

HAECO reported the matter to the ICAC after it was revealed, and rendered full assistance to the Commission during its investigation into the case.

The prosecution was today represented by prosecuting counsel Lisa Remedios, assisted by ICAC officers Frankie Chow and Francis Tsang.

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