Integrity Focus

A former employee of a car dealer was charged by the ICAC yesterday (May 13) for allegedly deceiving his employer into selling vehicle parts of two European brands worth totalling about $450,000 to three vehicle parts dealers.

Patrick Chu Kwok-wah, 54, former senior parts officer of Kam Lung Motors Limited (KLM), faces three counts of fraud, contrary to section 16A(1) of the Theft Ordinance. The defendant was released on ICAC bail, pending his appearance at the Kwun Tong Magistrates’ Courts on Thursday (May 16) for plea.

KLM is the authorised car dealer of Volkswagen and Audi in Hong Kong. Besides providing after-sale services, KLM also sells vehicle parts to garages and car owners at its depot in Yau Tong. The sales policy of KLM prohibits its employees from selling vehicle parts to any vehicle parts dealers in order to avoid the dealers to resell the parts for profits.

At the material time, the defendant was posted to the Yau Tong depot. His duties included handling the sale of vehicle parts. It is alleged that between January and August 2021, he falsely represented to KLM that various sales reports and sales invoices involving three garages were genuine, and with intent to defraud, induced KLM to sell vehicle parts worth totalling about $450,000 to three vehicle parts dealers, which resulted in prejudice to KLM.

The ICAC investigation stemmed from a corruption complaint concerning the sale of vehicle parts. Enquiries revealed that about 60 purchase orders purportedly issued by the three garages were false, namely the garages had never purchased the relevant vehicle parts from KLM but in fact the defendant sold the parts to the three vehicle parts dealers. Had KLM known about the actual situation, it would not have allowed the sales to take place.

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