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Jan 2026Thirty-three from two corruption syndicates netted by ICAC over $150m government technology subsidies fraud
Jan 2026Thirty-three from two corruption syndicates netted by ICAC over $150m government technology subsidies fraud
In two operations codenamed “Thunderclap” and “Thunder” mounted in mid-January, the ICAC neutralised two corruption syndicates and arrested 33 individuals, including their masterminds and backbone members on suspicion of defrauding government technology subsidies amounting to over $150 million in applications under the Digital Transformation Support Pilot Programme (DTSPP) and the Technology Voucher Programme (TVP) through bribery. Following ICAC’s law enforcement actions and interdepartmental co-operation, the approval and release of subsidies totalling over $120 million were put on hold.
Operation ‘Thunderclap’: Bribery-facilitated fraud over DTSPP
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In Operation “Thunderclap”, ICAC officers arrested six men and three women aged between 27 and 58, including the proprietor and staff members of an information technology services supplier (the IT services supplier) and four owners of three vendors. Among the arrestees was a then employee of the Hong Kong Cyberport Management Company Limited (Cyberport), which is the secretariat of the DTSPP.
The ICAC investigation arose from a corruption complaint. It was revealed that the IT services supplier had submitted over 1,000 DTSPP applications for various small and medium enterprises (SMEs) involving subsidies totalling about $50 million. The Commission and Cyberport have maintained a well-established mechanism for regular communication and reporting. The release of subsidies amounting to $31 million was put on hold following ICAC’s early intervention and close liaison with Cyberport.
It is suspected that the corruption syndicate had engaged three vendors which claimed to offer free assistance to SMEs in applying for government technology subsidies, inflated the costs of the digital transformation solutions and falsely represented that the applicants had paid for half costs in accordance with the requirements of the programme. The syndicate had also allegedly bribed a then Cyberport employee to circumvent the regulatory system and expedite the approval process.
Operation ‘Thunder’: Bribery-facilitated fraud over TVP
==========
A total of 24 individuals, namely 18 men and six women aged between 30 and 66 were arrested by the ICAC in Operation “Thunder”. The arrestees included four proprietors of information technology services suppliers (the IT services suppliers), a bank manager, an insurance agent, an accounting manager and a number of shell company owners, who were relatives and friends of syndicate members.
While suspected bribery-facilitated fraud in relation to TVP applications was revealed in the course of an ICAC investigation, a report was filed after the Innovation and Technology Commission (ITC) and the Hong Kong Productivity Council (HKPC) identified several service suppliers making repeated applications. Subsequent ICAC investigation revealed that the six IT services suppliers implicated were involved in about 470 TVP applications with subsidies amounting to over $100 million. Intervention by the ICAC and timely close liaison with the ITC and the HKPC had put on hold almost 90% of the subsidies concerned or $94 million.
Enquiries found that the corruption syndicate was organised and operated among a group of acquaintances and friends recruiting their relatives to join the scam by setting up various shell companies. The syndicate had allegedly bribed the bank manager, accounting manager, and insurance agent implicated to assist in opening bank accounts and falsifying accounting documents and mandatory provident fund contributions records purporting that those companies had normal business operations to facilitate their TVP applications. However, those companies had never purchased any equipment for enhancing productivity.
Cyberport, the ITC and the HKPC rendered full assistance to the ICAC during the investigation into the two cases. The ICAC enquiries did not reveal any involvement of any other Cyberport staff or any officers of the ITC and the HKPC in the scam.
The ICAC has all along been working closely with government departments and public bodies to provide corruption prevention advice and guidelines on administration of government funding schemes so as to enhance their integrity management and corruption prevention safeguards. The ICAC will continue to provide assistance to the relevant organisations to strengthen their anti-corruption capability.
Meanwhile, the ICAC will launch the Corruption Prevention Guide on Funding Schemes on Innovation and Technology in the second quarter of this year to help grantors strengthen the monitoring of funding schemes and enhance the anti-corruption capability of the industry. The ICAC will also organise an anti-corruption training for grantors in the public sector to assist their managerial staff to enhance governance and internal control systems.
A Cyberport spokesperson stated, “Cyberport takes this isolated incident with grave concern and reaffirms its zero-tolerance policy towards any potential unlawful activities, and has assisted law enforcement authorities in full strength with their work, including referring any suspected illegal cases to the ICAC for further investigation. As revealed by the ICAC’s investigation, except for the former staff member involved in the case, all other staff at Cyberport have duly performed their duties and exercised due diligence in the vetting and approval for the programme. Cyberport will continue to strengthen integrity management and anti-corruption measures.”
An ITC spokesperson said, “The ITC and the HKPC, which serves as the Secretariat of the TVP, have long been rigorously reviewing the information submitted by applicants to ensure the eligibility of the applications and that the project deliverables conform to relevant requirements. The current case demonstrates the high level of vigilance perceived by members of the ITC and the Secretariat, who proactively reported the concerned cases to law enforcement agencies when there was suspicion during the vetting procedures, and worked hand in hand with the ICAC during the investigation process.”
Appendix
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About the DTSPP
The DTSPP was implemented between early 2024 and May 2025 to subsidise SMEs in four specific sectors on a one-to-one matching basis in adopting ready-to-use basic digital technology solutions. The ceiling of subsidies offered to each enterprise was $50,000. Cyberport served as the secretariat for the DTSPP.
About the TVP
In late 2016, the Government implemented the TVP to subsidise local enterprises/organisations in using technology to enhance productivity and strengthen their long-term competitiveness. Successful projects were entitled to the government subsidies covering three-quarters of the costs, while the applicants were required to pay for the remaining quarter. Each eligible applicant could be approved for up to six projects, and the ceiling of government subsidy was $600,000 per applicant. The TVP has ceased to accept applications since late 2024.
Operation ‘Thunderclap’: Bribery-facilitated fraud over DTSPP
==========
In Operation “Thunderclap”, ICAC officers arrested six men and three women aged between 27 and 58, including the proprietor and staff members of an information technology services supplier (the IT services supplier) and four owners of three vendors. Among the arrestees was a then employee of the Hong Kong Cyberport Management Company Limited (Cyberport), which is the secretariat of the DTSPP.
The ICAC investigation arose from a corruption complaint. It was revealed that the IT services supplier had submitted over 1,000 DTSPP applications for various small and medium enterprises (SMEs) involving subsidies totalling about $50 million. The Commission and Cyberport have maintained a well-established mechanism for regular communication and reporting. The release of subsidies amounting to $31 million was put on hold following ICAC’s early intervention and close liaison with Cyberport.
It is suspected that the corruption syndicate had engaged three vendors which claimed to offer free assistance to SMEs in applying for government technology subsidies, inflated the costs of the digital transformation solutions and falsely represented that the applicants had paid for half costs in accordance with the requirements of the programme. The syndicate had also allegedly bribed a then Cyberport employee to circumvent the regulatory system and expedite the approval process.
Operation ‘Thunder’: Bribery-facilitated fraud over TVP
==========
A total of 24 individuals, namely 18 men and six women aged between 30 and 66 were arrested by the ICAC in Operation “Thunder”. The arrestees included four proprietors of information technology services suppliers (the IT services suppliers), a bank manager, an insurance agent, an accounting manager and a number of shell company owners, who were relatives and friends of syndicate members.
While suspected bribery-facilitated fraud in relation to TVP applications was revealed in the course of an ICAC investigation, a report was filed after the Innovation and Technology Commission (ITC) and the Hong Kong Productivity Council (HKPC) identified several service suppliers making repeated applications. Subsequent ICAC investigation revealed that the six IT services suppliers implicated were involved in about 470 TVP applications with subsidies amounting to over $100 million. Intervention by the ICAC and timely close liaison with the ITC and the HKPC had put on hold almost 90% of the subsidies concerned or $94 million.
Enquiries found that the corruption syndicate was organised and operated among a group of acquaintances and friends recruiting their relatives to join the scam by setting up various shell companies. The syndicate had allegedly bribed the bank manager, accounting manager, and insurance agent implicated to assist in opening bank accounts and falsifying accounting documents and mandatory provident fund contributions records purporting that those companies had normal business operations to facilitate their TVP applications. However, those companies had never purchased any equipment for enhancing productivity.
Cyberport, the ITC and the HKPC rendered full assistance to the ICAC during the investigation into the two cases. The ICAC enquiries did not reveal any involvement of any other Cyberport staff or any officers of the ITC and the HKPC in the scam.
The ICAC has all along been working closely with government departments and public bodies to provide corruption prevention advice and guidelines on administration of government funding schemes so as to enhance their integrity management and corruption prevention safeguards. The ICAC will continue to provide assistance to the relevant organisations to strengthen their anti-corruption capability.
Meanwhile, the ICAC will launch the Corruption Prevention Guide on Funding Schemes on Innovation and Technology in the second quarter of this year to help grantors strengthen the monitoring of funding schemes and enhance the anti-corruption capability of the industry. The ICAC will also organise an anti-corruption training for grantors in the public sector to assist their managerial staff to enhance governance and internal control systems.
A Cyberport spokesperson stated, “Cyberport takes this isolated incident with grave concern and reaffirms its zero-tolerance policy towards any potential unlawful activities, and has assisted law enforcement authorities in full strength with their work, including referring any suspected illegal cases to the ICAC for further investigation. As revealed by the ICAC’s investigation, except for the former staff member involved in the case, all other staff at Cyberport have duly performed their duties and exercised due diligence in the vetting and approval for the programme. Cyberport will continue to strengthen integrity management and anti-corruption measures.”
An ITC spokesperson said, “The ITC and the HKPC, which serves as the Secretariat of the TVP, have long been rigorously reviewing the information submitted by applicants to ensure the eligibility of the applications and that the project deliverables conform to relevant requirements. The current case demonstrates the high level of vigilance perceived by members of the ITC and the Secretariat, who proactively reported the concerned cases to law enforcement agencies when there was suspicion during the vetting procedures, and worked hand in hand with the ICAC during the investigation process.”
Appendix
==========
About the DTSPP
The DTSPP was implemented between early 2024 and May 2025 to subsidise SMEs in four specific sectors on a one-to-one matching basis in adopting ready-to-use basic digital technology solutions. The ceiling of subsidies offered to each enterprise was $50,000. Cyberport served as the secretariat for the DTSPP.
About the TVP
In late 2016, the Government implemented the TVP to subsidise local enterprises/organisations in using technology to enhance productivity and strengthen their long-term competitiveness. Successful projects were entitled to the government subsidies covering three-quarters of the costs, while the applicants were required to pay for the remaining quarter. Each eligible applicant could be approved for up to six projects, and the ceiling of government subsidy was $600,000 per applicant. The TVP has ceased to accept applications since late 2024.