Recent ICAC Cases

23
Jun 2023
Contractor couple charged by ICAC in $4.2m HKPost contract conflict of interest case sentenced for obtaining advantage by deception

The ICAC had earlier charged a then Assistant General Manager of the Hongkong Post (HKPost) with misconduct in public office (MIPO) for allegedly concealing his conflicting interest when handling the tendering exercise of an online platform redevelopment project, causing a contract worth about $4.2 million be awarded to a contractor operated by his cousin and her spouse. The contractor couple were today (June 23) given suspended sentences at the District Court after pleading guilty to obtaining pecuniary advantage by deception.

Cheung Kin-hang, 48, former chief operating officer of Intimex Business Solutions Company Limited (Intimex), and his wife Chow Oi-yee, 48, shareholder cum chief executive director of Intimex, were respectively sentenced to eight months and six months in jail, both suspended for two years.

Cheung pleaded guilty to two counts of obtaining pecuniary advantage by deception, contrary to section 18(1) of the Theft Ordinance. Chow pleaded guilty to one of the charges, while the remaining charge against her was left on file at the District Court.

In sentencing, Deputy Judge Ms Merinda Chow Yin-chu reprimanded the defendants for bidding the contract fraudulently and committing offences which were serious in nature. Suspended sentences were imposed on the duo having considered their guilty plea and other mitigating factors.

The court heard that in around June 2017, the HKPost conducted a tendering exercise for a “Redevelopment of On-line Shopping Platform Project” (the Project) to integrate its various online shopping platforms. In late September 2017, the HKPost awarded the Project to Intimex at a contract sum of about $4.2 million.

A cousin of Chow, who was a then Assistant General Manager of the HKPost, was responsible for the tendering exercise of the Project. As required by the relevant tender specifications, the implementation team for the Project should comprise at least six persons with specific qualifications and working experience, or otherwise the tender of the bidder concerned would not be considered.

The court heard that during the tendering process, Cheung and Chow, together with other persons, made false representations to the HKPost that a schoolmate of Chow and two employees of a business partner of Intimex (the trio) would be members of the implementation team for the Project, and about the relevant working experience of the trio and Cheung, so as to obtain for Intimex an opportunity to earn remuneration in respect of the contract for the Project.

The ICAC investigation arose from a corruption complaint. It was revealed that Cheung and Chow requested the trio to assist in making up the required headcount as Intimex failed to comply with the tender specifications by providing team members with the specific qualifications and experiences to implement the Project. The trio had never been employees of Intimex or taken part in the Project. Cheung joined Intimex no earlier than mid-July and previously he had not worked for its projects.

Had the HKPost known that any of the information concerning the qualification and experience of Intimex’s implementation team was false, it would not have awarded the Project to Intimex and paid a total of about $2.9 million to it after deducting a fine for a delay in the Project’s completion.

Co-defendant Cheng Chun-kit, 44, then Assistant General Manager of the HKPost and cousin of Chow, earlier pleaded not guilty to one count of MIPO. His trial was scheduled for September 18.

The HKPost had rendered full assistance to the ICAC during its investigation into the case.

The prosecution was today represented by Senior Public Prosecutor Claudia Ng, assisted by ICAC officer Matt Cheung.

The ICAC reminds members of the public to abide by the law while having dealings with government departments as obtaining a government contract by corrupt or deceptive means would be subject to criminal liability.

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