Recent ICAC Cases

10
Aug 2023
Four charged by ICAC for concealing conflict of interest over telecom company’s fibre installation service orders

An assistant manager of a telecommunications company and three others were charged by the ICAC yesterday (August 9) for allegedly concealing the assistant manager’s interest in a contractor to secure fibre installation service orders of the telecommunications company worth totalling $180,000.

Chan Chun-kin, 43, assistant manager of Technical & Service Support Department of i-CABLE Communications Limited (i-CABLE); his girlfriend Fok Yuen-kei, 44; his personal friend Lo Lok-hei, 43, sole director cum shareholder of Lokkin Engineering Limited (Lokkin); and Chan Hau-leung, 35, technician of a contractor of i-CABLE, jointly face three counts of obtaining pecuniary advantage by deception, contrary to section 18(1) of the Theft Ordinance.

The defendants were released on ICAC bail, pending their appearance at the West Kowloon Magistrates’ Courts tomorrow (August 11) for plea.

At the material time, Chan Chun-kin was an assistant manager of Technical & Service Support Department of i-CABLE. He was responsible for monitoring and evaluating the service quality of contractors engaged by the department to conduct networking installation and maintenance works at customers’ premises and to make recommendation on the engagement of contractors.

The policies of i-CABLE stipulated that all employees should avoid actual or potential conflict of interest and employees should declare their conflict of interest in writing to the management.

The charges allege that between May and August 2022, the four defendants dishonestly obtained for Lokkin opportunities to earn remuneration in respect of three service orders regarding fibre installation at three residential estates by concealing from i-CABLE that Chan Chun-kin was the beneficial owner and operator of Lokkin.

The ICAC investigation arose from a corruption investigation. Enquiries revealed that upon Chan Chun-kin’s recommendation, Lokkin was engaged by i-CABLE as a contractor for fibre installation works.

ICAC enquiries revealed that Chan Chun-kin allegedly instructed his friend Lo to set up Lokkin in 2021 with a view to taking up networking installation and maintenance works of i-CABLE, and open bank accounts for Lokkin. Meanwhile, Chan Chun-kin’s girlfriend Fok assisted in arranging documents for Lokkin’s incorporation and opening of bank accounts.

On the supplier registration form prepared by Chan Chun-kin and signed by Lo, it was declared that Lo was the sole director-cum-shareholder of Lokkin without disclosing Chan Chun-kin’s beneficial interest in the company.

It is alleged that on Chan Chun-kin’s instruction, a technician of another contractor of i-CABLE Chan Hau-leung submitted to i-CABLE three quotations in the name of Lokkin. Lokkin was subsequently awarded the abovementioned three service orders of fibre installation worth totalling $180,000.

i-CABLE has rendered full assistance to the ICAC during its investigation into the case.

The ICAC encourages public and private organisations to establish clear guidelines and systems of declaration on conflict of interest. Staff should avoid conflict of interest and make declarations in strict adherence to internal guidelines. Concealing any conflict of interest in relation to one’s official duties to benefit himself or his associates may contravene the criminal law, such as the Prevention of Bribery Ordinance if offering or accepting of bribes is involved.

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