Recent ICAC Cases

31
May 2023
Secondary school teacher charged by ICAC admits concealing conflict of interest in workshop

A secondary school teacher, charged by the ICAC, today (May 31) admitted at the Tuen Mun Magistrates’ Courts that he had deceived the school into engaging a service provider to host a workshop for students by concealing that he was the major shareholder of it.

Lau Tat-li, 32, former teacher of ELCHK Lutheran Academy (Lutheran Academy), admits one count of fraud, contrary to Section 16A(1) of the Theft Ordinance.

Deputy Magistrate Mr Chu Chung-keung adjourned the case to June 21 for sentence, pending the defendant’s community service order report. The defendant was granted bail.

The Deputy Magistrate also ordered the defendant to repay $48,000 to Lutheran Academy, being the service fee involved in the case.

The court heard that at the material time the defendant was a teacher of design subject of Lutheran Academy, a direct subsidy scheme secondary school. Guidelines of Lutheran Academy provided that staff involved in procurement and supplies duties would declare in writing to the Incorporated Management Committee (IMC) of the school any connection they or their families have with any suppliers or contractors as soon as possible.

In April 2021, the defendant was assigned to host a robot workshop during the extra curriculum activities week in June 2021. In mid-May, he informed the school that he wanted to host a “Design – Toys and figures maker workshop” instead. He subsequently submitted the quotations of two service providers to the school and recommended to engage Wonder Hobbys. Limited (Wonder Hobbys) at $50,000 to host the workshop for 25 students as its quotation was $2,000 lower than that of its competitor.

The procurement was approved by Lutheran Academy and Wonder Hobbys eventually charged the school $48,000 for hosting the workshop attended by 24 students.

The ICAC investigation arose from a corruption complaint. Enquiries revealed that at the material time, the defendant was a director-cum-shareholder of Wonder Hobbys holding 70 per cent of its shares. But the defendant had never disclosed his interest in Wonder Hobbys to the school. Had Lutheran Academy known the defendant’s interest in Wonder Hobbys, it would not have approved awarding the workshop to Wonder Hobbys.

It was also revealed that after Wonder Hobbys received the $48,000 service fee, $30,000 out of it was transferred to the personal account of the defendant.

Lutheran Academy had rendered full assistance to the ICAC during its investigation into the case.

The prosecution was today represented by ICAC officer William Leung.

The ICAC reminds school personnel to avoid conflict of interest situations and to make timely declaration in accordance with the internal guidelines of individual schools as concealing any conflict of interest in relation to one’s official duties to benefit himself or his associates may contravene the Prevention of Bribery Ordinance or other criminal laws. Schools could contact ICAC regional offices for arranging corruption prevention and integrity training for staff and refer to the Best Practice Checklist for Governance and Internal Control in Schools.

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