Integrity Focus

The ICAC yesterday (November 7) charged two former technical staff of a property management company for allegedly deceiving the company into awarding various work orders worth totalling $2.1 million to a contractor set up by the duo who were uncle and cousin by concealing their conflict of interest and using false quotations. The conspiracy to defraud offences were revealed in the course of a corruption investigation by the Commission.

Chu Kim-fai, 50, former assistant technical manager of New World Property Management Company Limited (NWP); and his nephew Chu Kam-yin, 31, former assistant technical officer of NWP, jointly face two counts of conspiracy to defraud, contrary to the Common Law.

The defendants were released on ICAC bail, pending their appearance in the Eastern Magistrates’ Courts tomorrow (November 9) for mention. The prosecution will apply for transferring the case to the District Court for plea.

The offences took place between September 2017 and October 2020, during which Chu Kim-fai was an assistant technical manager of NWP. He was responsible for supervising technical staff deployed at residential and commercial properties of NWP’s holding company, New World Development Company Limited (NWD), on Hong Kong Island and in Kowloon to handle maintenance works. His nephew Chu Kam-yin was also under his supervision.

All employees of NWP had to abide by the “Conflict of Interest Policy” of NWD and were required to declare conflict of interest in procurement exercises. When outsourcing maintenance works, quotations from NWP’s listed contractors were invited and only one non-listed contractor was allowed to be invited.

FNC (Creation) Limited (FNC) was not NWP’s listed contractor. Chu Kim-fai’s elder brother and the father of Chu Kam-yin was one of its operators.

It is alleged that the two defendants conspired together to defraud NWP by concealing their involvement in the establishment and management of FNC and the interest of Chu Kim-fai or his elder brother in FNC, and with intent to defraud, induced NWP to award 72 work orders to FNC.

The duo also allegedly conspired to use 114 sets of quotation documents purportedly issued by four listed contractors of NWP, and with intent to defraud, induced NWP to award 56 of the work orders to FNC.

The ICAC investigation arose from a corruption complaint. Enquiries revealed that the four contractors concerned had never submitted to NWP the quotation documents in relation to the work orders worth totalling over $2.1 million.

NWD and NWP have rendered full assistance to the ICAC during its investigation into the case.

The ICAC reminds staff of business organisations to avoid conflict of interest situations and to make timely declaration to their employers. Concealing any conflict of interest in relation to one’s official duties to benefit himself may contravene the criminal law. It may constitute a breach of the Prevention of Bribery Ordinance if offering and accepting of bribes are involved. The ICAC makes efforts to promote integrity to property management companies and practitioners, such as launching a multi-year programme on professional ethics and integrity, and producing educational materials to enhance practitioners' awareness on corruption prevention.