Integrity Focus

A former employee of an engineering company was charged by the ICAC today (November 28) for allegedly deceiving the company into awarding over 1,100 lifts and escalators maintenance works orders worth totalling about $700,000 to a contractor set up by his mother by concealing his conflict of interest in it.

Cheung Tsz-chung, 38, former associate of ISPL Consulting Limited (ISPL), faces one count of fraud, contrary to section 16A of the Theft Ordinance.

The defendant was released on ICAC bail, pending his appearance at the Eastern Magistrates’ Courts on Thursday (November 30) for mention. The prosecution will apply for transferring the case to the District Court for plea.

At the material time, the defendant was employed by engineering company ISPL as associate. He was responsible for managing engineering projects relating to lifts and escalators, and outsourcing works to contractors. As requested by ISPL, the defendant was required to declare any conflict of interest arising from matters relating to outsourcing of contracts.

It is alleged that between March 2019 and January 2022, the defendant concealed from ISPL his interest and his mother’s interest in Accredited Consulting Limited (ACL), and with intent to defraud, induced ISPL to engage ACL for works orders and consultancy services.

The ICAC investigation arose from a corruption complaint. Enquiries revealed that during the above period, ISPL outsourced over 1,100 lifts and escalators maintenance works orders worth totalling about $700,000 to ACL upon the defendant’s recommendation.

ICAC enquires also revealed that the defendant’s mother was the sole director-cum-shareholder of ACL. The defendant and his mother were both authorised signatories of the bank account of ACL.

ISPL has rendered full assistance to the ICAC during its investigation into the case.

The ICAC reminds staff of business 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 or his associates may contravene the criminal law, such as the Prevention of Bribery Ordinance if offering or accepting of bribes is involved.