Integrity Focus

The ICAC had earlier charged two operators of two former suppliers of the Hong Kong University of Science and Technology (HKUST) for fraud by conspiring with a then Adjunct Associate Professor of the university to conceal the latter’s interest in the two suppliers concerning various procurements that involved payments amounted to several million dollars over a span of more than seven years. One of the duo was sentenced to 28 months’ imprisonment after pleading guilty to his offences at the District Court today (October 11).

Yeung Siu-on, 41, then sole director and shareholder of PIT Limited (PITL), pleaded guilty to 11 charges – one of conspiracy to defraud, contrary to Common Law; and 10 of fraud, contrary to section 16A(1) of the Theft Ordinance. Three similar charges against him were left on file at the District Court.

In sentencing, Deputy District Judge Mr Cheang Kei-hong said the defendant failed to distinguish right from wrong and obtained the procurement orders by making false declarations. He took an overall starting point of 48 months’ imprisonment and reduced the jail term to 28 months having considered the defendant’s guilty plea and other mitigating factors.

At the material time, PITL was a supplier providing environmental testing services and Yeung Siu-on became its sole director and shareholder in late 2011. When medical product supplier Chun Fo (Asia) Pharmaceutical Co., Limited (CFPL) incorporated in mid-2012, Yeung Siu-on was its sole director and shareholder.

Between September 2011 and February 2019, Yeung Lam-lung, then Adjunct Associate Professor of the Department of Chemistry of HKUST, conducted tendering and procurement exercises for the university and its subsidiary to purchase various laboratory equipment and testing services from PITL and CFPL.

In accordance with the regulations of HKUST, Yeung Lam-lung was required to declare his conflict of interest with any suppliers before engaging them. Suppliers were also required to declare whether any HKUST staff had any interest in them.

The ICAC investigation arose from a corruption complaint. Enquiries revealed that although Yeung Lam-lung had direct or indirect financial interests in PITL and CFPL, Yeung Siu-on conspired with the latter to defraud HKUST by concealing the latter’s interest in the two suppliers and induced it to engage CFPL in one of the above tendering and procurement exercises.

The court heard that Yeung Siu-on, together with Yeung Lam-lung, induced HKUST or its subsidiary to engage PITL in 10 other tendering and procurement exercises by the same fraudulent means. The 11 tendering and procurement exercises involved payments totalling over $3.2 million.

As Yeung Lam-lung had already left Hong Kong, a warrant for the arrest of him was issued by a Magistrate in early October 2022 upon the application made by the ICAC.

Co-defendant Au Yeung Siu-fung, who replaced Yeung Siu-on as the sole director and shareholder of CFPL in the material time, earlier pleaded not guilty to two counts of conspiracy to defraud and one count of fraud. His trial is scheduled for 21 February, 2024.

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

The prosecution was today represented by Senior Public Prosecutor Chan Sze -yan, assisted by ICAC officer Michael Lim.

The ICAC reminds members of public and private organisations to 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 may contravene the criminal law, such as the Prevention of Bribery Ordinance if offering or accepting of bribes is involved.