Integrity Focus

A former manager of Hong Kong Design Centre (HKDC), charged by the ICAC, was today (November 30) sentenced to 53 weeks’ imprisonment at the Eastern Magistrates’ Courts for deceiving the HKDC into engaging two vendors operated by her husband to provide marketing services in five projects sponsored by the government involving a total contract sum of about $400,000 by concealing her conflict of interest.

Chiu Ka-wai, 43, former manager of partnerships & marketing communications of HKDC, was earlier found guilty of a total of five charges – four of fraud, contrary to section 16A(1) of the Theft Ordinance; and one of attempted fraud, contrary to section 16A(1) of the Theft Ordinance and section 159G of the Crimes Ordinance.

In sentencing, Magistrate Mr Jeffrey Sze Cho-yiu said the present case involved offences of serious nature which lasted a long period. The misdeeds of the defendant not only dealt a blow to the declaration system of the HKDC, but had also shaken public confidence in the organisation.

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 or his associates may constitute a breach of the Prevention of Bribery Ordinance or other criminal law. The ICAC recommends business organisations to establish clear guidelines and systems of declaration on conflict of interest with which employees should strictly comply.

The court heard that HKDC was a publicly-funded agency which promoted creative and design thinking in Hong Kong. It required all staff to declare any financial interests of themselves or their family members in any company or organisation which had business dealings with HKDC.

When the offences took place between March 2019 and June 2020, the defendant was responsible for the marketing and promotion of two programmes sponsored by public funds, namely Knowledge of Design Week and Business of Design Week. She recommended Party in Haze (PIH) and 3T6B Limited (3T6B) to provide services to HKDC in four marketing projects and one website revamp project, worth a total of about $400,000 under the two programmes.

The ICAC investigation arose from a corruption complaint. Enquiries revealed that PIH was registered by the defendant’s elder brother; while her husband was the major shareholder cum director of 3T6B. Both vendors were in fact operated by the defendant’s husband.

The court heard that at the material time, the defendant submitted to HKDC two annual conflict of interest declaration forms and five procurement application forms, in which she concealed the direct or indirect financial interest of her husband in PIH and 3T6B.

ICAC enquiries also revealed that PIH or 3T6B were either the only bidder or the company offering the lowest bid in the five projects. Four of the projects were awarded to the two vendors, while the remaining project was not awarded due to its cancellation. Had HKDC known that the defendant’s husband had direct or indirect financial interests in the two vendors, it would not have engaged the two companies to provide services.

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

The prosecution was today represented by Senior Public Prosecutor Audrey Parwani, assisted by ICAC officer Nick Lai.