Integrity Focus

Five employees of a logistics company were charged by the ICAC today (January 21) for allegedly deceiving the company into paying service charges totalling over $4.5 million by concealing their interests in various light goods vehicles (LGVs) and arranging others to use those LGVs to take up delivery orders of the company.

The five defendants, aged between 39 and 59, face four counts of conspiracy to defraud in total, contrary to Common Law. They were Or Chi-ho, then transportation manager of V-Logic Limited (V-Logic); Tam Lap-kuen and Canny Chan Ka-ming, respectively then and serving delivery team leader of V-Logic; and Ho Wai-man and Tang Weide, both then drivers of the company.

The five defendants were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts on Thursday (January 23) for mention. The prosecution will later make an application for transferring the case to the District Court for plea.

V-Logic, which provides local delivery services, has a team of in-house drivers and another team of outsourced drivers taking up clients’ orders. Between November 2017 and November 2021, Or was promoted to transportation manager of V-Logic while Tam and Chan were delivery team leaders of the company. The trio were mainly responsible for hiring outsourced drivers and assigning delivery jobs of V-Logic to in-house and outsourced drivers. Ho and Tong were in-house drivers of the company.

Two of the charges allege that Or, Tam and Chan had conspired together with an outsourced driver of V-Logic to induce the company to pay service charges totalling over $3.2 million by concealing from the company that two LGVs were owned or controlled by the trio and arranging others to register as outsourced drivers of the company and to use those LGVs to take up its delivery orders.

Two other charges allege that the five defendants had conspired together with the outsourced driver to conceal Ho and Tang’s beneficial interest in two other LGVs from V-Logic and induced V-Logic to pay service charges totalling about $1.3 million by similar fraudulent means.

The ICAC investigation arose from a corruption complaint. Enquiries revealed that Or, Tam and Chan allegedly arranged an outsourced driver of V-Logic to purchase four LGVs and arranged the latter and another person to register as owners of the LGVs with the Transport Department for taking up the orders of V-Logic.

Employees of V-Logic are prohibited from assigning the company’s delivery orders to any associated person or arranging any LGVs owned by them to take up its delivery orders. ICAC enquiries revealed that the four LGVs concerned were allegedly controlled by the five defendants, who had never disclosed to the company their interests in the vehicles. As a result, service charges totalling over $4.5 million were paid to the five defendants.

V-Logic had rendered full assistance to the ICAC during its investigation into the case.

The ICAC advises business organisations to establish clear guidelines and systems of declaration on conflict of interest. Staff members of business organisations are reminded to avoid conflict of interest situations arising in the workplace 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.