Integrity Focus

A logistics subcontractor, charged by the ICAC, was today (July 11) sentenced to 15 months’ imprisonment at the Kwun Tong Magistrates’ Courts for bribery by inflating delivery fees and returning the differences to a manager of a logistics company as “sweetener” for maintaining a good relationship with the latter and his showing favour to the subcontractor in outsourcing various delivery orders worth totalling about HK$1.7 million.

Liu Kwun-ming, 55, sole director cum shareholder of Fung Wing Logistics Co., Limited (Fung Wing), was earlier found guilty of one count of conspiracy for an agent to accept advantages, contrary to section 9(1)(b) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance.

In sentencing, Deputy Magistrate Miss Polly Chuang Po-yi said the offence committed by the defendant was serious in nature, lasted a long period and involved a considerable sum of bribes. The act of the defendant had undermined the probity of Hong Kong and fair competition in the logistics industry, warranting a deterrent sentence.

The court heard that since April 2018, Fung Wing had been a subcontractor of Eas Da Tong International Trucking Company (Eas Da Tong) which provided cross-border logistics services to clients of its mother company – Kerry Logistics Network Limited (Kerry Logistics).

Between April 2018 and April 2021, Eas Da Tong had placed delivery orders worth totalling about HK$1.7 million with Fung Wing. The orders were handled by a manager of another subsidiary of Kerry Logistics.

The ICAC investigation arose from a corruption complaint. Enquiries revealed that the defendant conspired with his business partner in Fung Wing and the manager of Kerry Logistics’ subsidiary to inflate the haulage charges on Fung Wing’s payment reports, and returned the price differences totalling over Renminbi 120,000 to the manager to maintain a good relationship with the latter for obtaining more delivery orders from Eas Da Tong.

Kerry Logistics had rendered full assistance to the ICAC during its investigation into this case.

The prosecution was today represented by Senior Public Prosecutor Clara Ma, assisted by ICAC officer Zac Ng.

The ICAC has been arranging integrity training and providing corruption prevention resources for different industries. Business operators are reminded not to commit bribery or engage in illegal activities. For more corruption prevention information, please visit the webpage of the ICAC's Hong Kong Business Ethics Development Centre.