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Jun 2024Eight months’ jail for then assistant manager of telecom company charged by ICAC for concealing conflict of interest over fibre installation service ordersA then assistant manager of a telecommunications company, charged by the ICAC, was today (June 19) sentenced to eight months’ imprisonment at the West Kowloon Magistrates’ Courts after being convicted of obtaining fibre installation service orders worth totalling $180,000 by concealing his interest in a contractor. The defendant was also found guilty of perversion for making false representation about his declaration made to the company during the Commission’s investigation.Chan Chun-kin, 44, former assistant manager of Technical & Service Support Department of i-CABLE Communications Limited (i-CABLE), was found guilty of three counts of obtaining pecuniary advantage by deception, contrary to section 18(1) of the Theft Ordinance; and one count of doing an act or a series of acts tending and intended to pervert the course of public justice, contrary to the Common Law.In sentencing, Magistrate Mr Jason Wan Siu-ming reprimanded the defendant for committing a premeditated crime repeatedly, which undermined the level-playing field of Hong Kong’s business sector and deprived other competitors of their opportunities to obtain contracts. A custodial sentence was imposed on the defendant in view of the serious nature of the offences.At the material time, the defendant was an assistant manager of Technical & Service Support Department of i-CABLE. He was responsible for monitoring and evaluating the service quality of contractors engaged by the department to conduct networking installation and maintenance works at customers’ premises and to make recommendation on the engagement of contractors.The policies of i-CABLE stipulated that all employees should avoid actual or potential conflict of interest and that they should fill in and submit declaration forms to declare their conflict of interest in writing to the management.The court heard that in May 2022, Lokkin Engineering Limited (Lokkin) was engaged by i-CABLE as a contractor for fibre installation works upon the defendant’s recommendation. Lokkin was subsequently awarded three service orders of fibre installation for three residential estates worth totalling about $180,000 between May and August 2022.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the defendant had instructed a friend to set up Lokkin in 2021 with a view to taking up networking installation and maintenance works of i-CABLE, and to open bank accounts for Lokkin.On the i-CABLE supplier registration form prepared by the defendant, it was declared that the friend was the sole director-cum-shareholder of Lokkin. It was concealed that the defendant was the beneficial owner and operator of Lokkin.The court heard that between mid-September and early October 2022, after the defendant had been arrested by the ICAC, he intended to pervert the course of public justice by making a false representation to i-CABLE that he had submitted a declaration form to the company in late 2021 to declare his role in Lokkin.i-CABLE had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Mark Wei, assisted by ICAC officers Chris Lai and William Wong.An ICAC spokesperson notes that perverting the course of public justice is a serious offence. An offender is liable on conviction to an imprisonment for any term and a fine of any amount. Should such illegal acts be found in ICAC cases, the Commission would not tolerate them and would follow up on them in a serious manner. 19
Jun 2024Ex-manager of telecom company charged by ICAC admits at High Court HK$16m fraud by concealing mother’s role in supplierA former manager of a telecommunications company, charged by the ICAC, today (June 19) admitted at the Court of First Instance of the High Court that he had deceived the company into issuing purchase orders worth totalling over HK$30 million and making service payments totalling over HK$16 million to a supplier owned by his mother by concealing his conflict of interest.Cheung Cheuk-man, 46, former manager of PCCW Services Limited (PCCW Services), a subsidiary of PCCW Limited (PCCW), today pleaded guilty to one count of fraud, contrary to section 16A(1) of the Theft Ordinance. Ms Justice Esther Toh Lye-ping adjourned the case to tomorrow (June 20) for mitigation and sentence.The court heard that in November 2014, the defendant was employed by PCCW Services to work as a manager of the network service team of PCCW Solutions Limited (PCCW Solutions), another subsidiary of PCCW, which provided a wide range of information technology and network solutions to its clients. PCCW’s policy stipulated that its employees and subsidiaries must make declarations where potential conflicts of interest arose.Upon the defendant’s recommendation, Go Go Wifi Limited (GGWL) was included in the list of approved suppliers of PCCW and its subsidiaries since January 2016. Between January 2016 and July 2017, the defendant procured PCCW Solutions to issue 29 purchase orders in the sum of over HK$30 million to GGWL, which subsequently received payments of about HK$8.7 million and about US$990,000 from PCCW Solutions.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the defendant’s mother had become the sole director cum shareholder of GGWL since August 2014, but he had never disclosed to his employer his mother’s interests in GGWL.The defendant was responsible for obtaining quotations and confirming receipt of services before release of payments to GGWL for the 29 purchase orders. ICAC enquiries revealed that the defendant had used false quotations purportedly issued by other companies to procure awarding the contracts to GGWL by making it the lowest bidder. On various occasions, the defendant had confirmed to PCCW Solutions in writing that he had no conflict of interest in the purchases concerned.It was also revealed in the ICAC investigation that GGWL had never provided any service in relation to the 29 purchase orders. The services concerned were either provided by other service suppliers or carried out internally by PCCW Solutions.The prosecution earlier withdrew a charge of “money-laundering” against the defendant’s mother, Lee Po-mei, 67.PCCW and its subsidiaries 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 Wilson Lam.The ICAC encourages public and private organisations to establish clear guidelines and systems of declaration on conflict of interest. Staff should 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. 18
Jun 2024Businessman charged by ICAC for laundering RMB 400mA businessman was charged by the ICAC yesterday (June 17) for allegedly laundering crime proceeds totalling over RMB 400 million through a bank account in Hong Kong.Tan Kim Chwee, 60, faces one count of dealing with property known or believed to represent proceeds of indictable offence, contrary to section 25(1) of the Organized and Serious Crimes Ordinance. He was released on ICAC bail, pending his appearance at the Eastern Magistrates’ Courts tomorrow (June 19) for mention.The charge alleges that between February and September 2020, the defendant dealt with two sums totalling over RMB 400 million in his bank account held with a bank in Hong Kong, knowing or having reasonable grounds to believe that the sums in whole or in part directly or indirectly represented any person’s proceeds of an indictable offence.The ICAC investigation arose from a corruption complaint. Enquiries revealed the defendant’s alleged involvement in illegal activities by assisting another man to hold the shares of a company between 2013 and 2020, and using the defendant’s bank account in Hong Kong to receive sums totalling over RMB 400 million between February and September 2020 after the shares were sold.The relevant investigation is continuing, the ICAC does not rule out laying more charges against the defendant.The bank concerned has rendered full assistance to the ICAC during its investigation into the case. 14
Jun 2024ICAC operation ‘Gale’: 20 arrested in connection with alleged bribery for falsifying car testing centre’s annual examination resultsIn an operation codenamed “Gale” mounted early last week, the ICAC arrested 20 people, including staff members of a designated car testing centre (DCTC) in the New Territories, for their suspected involvement in a bribery scam that facilitated a number of private cars to pass the annual vehicle examination by circumventing the examination procedures of the Transport Department (TD).Eighteen of the arrestees, all male, aged between 27 and 69, are respectively 10 staff members of a DCTC, four proprietors of three garages, and four middlemen. The 10 DCTC staff members are four responsible persons (RPs) and six approved car testers (ACTs); one of the RPs is also the manager of the DCTC.In the operation, search warrants were executed by ICAC officers to conduct searches at various premises, including the DCTC, as well as offices and places of business of the garages. A total of 10 private cars were seized and over 10 individuals, including the car owners concerned, were also interviewed by ICAC officers.According to the Road Traffic Ordinance, all private cars manufactured for six years or more are required to undergo an annual examination at a DCTC appointed by the TD. ACTs are responsible for conducting the annual vehicle examination under the supervision of RPs, and issuing a certificate of roadworthiness for each vehicle which has passed the examination for the car owner to renew its licence.The ICAC investigation arose from corruption complaints in relation to annual vehicle examination. The complaints concern allegations in relation to staff members of the DCTC accepting bribes from the proprietors of the three garages or the middlemen to fraudulently facilitate private cars not meeting the relevant standards to pass the annual vehicle examination, contravening section 9 of the Prevention of Bribery Ordinance and other relevant legislation.The ICAC investigation identified that the private cars concerned were referred by the three garages to the DCTC for conducting the annual vehicle examination. In particular, it was revealed that the scam involved falsified results of the smoke emission test. Other test results relating to safety issues were believed to be unaffected.The arrested DCTC staff members are suspected of accepting bribes for substituting the results of private cars passing the smoke emission test as purported results for cars which failed the test.The 10 private cars seized in the operation were sent to the TD for re-examination. All 10 private cars failed the annual vehicle examination and it was revealed that the exhaust system of some of the cars had been altered.Investigation so far revealed that the car owners concerned engaged the three garages for the annual vehicle examination. The ICAC is looking into their knowledge of the scam.Also arrested in the operation were two contract staff of the TD. Although the duo did not discharge any car-testing duties, they were suspected of accepting advantages from one of the responsible persons of the DCTC for tipping him off about possible ICAC investigation of the DCTC.All arrestees have been released on ICAC bail. As the ICAC corruption inquiries are ongoing, further law enforcement actions will not be ruled out. No further comment on the case will be made by the Commission at this stage.The TD has rendered full assistance to the ICAC during its investigation. The ICAC has offered corruption prevention advice on vehicle inspection arrangements at DCTCs. Following the findings of this case, the ICAC and the TD will review the relevant procedures and strengthen supervision of DCTCs so as to stamp out malpractices. 13
Jun 2024Asset management firm owner charged by ICAC for laundering $50 millionAn owner of an asset management company was charged by the ICAC yesterday (June 12) for allegedly laundering crime proceeds of about $50 million through a number of companies and individuals.Xiao Rui, 35, an owner of Augustine Holdings Limited (AHL), faces two counts of dealing with property known or believed to represent proceeds of indictable offence, contrary to Section 25(1) of the Organized and Serious Crimes Ordinance. He was released on ICAC bail, pending his appearance at the Eastern Magistrates’ Courts tomorrow (June 14) for mention.The offences took place between March 2016 and November 2023. At the material time, the defendant and two other persons jointly set up AHL. The company was engaged in asset management business and had three subsidiaries. In 2016, the defendant requested one of the AHL owners who was familiar with the operation of underground money changers to assist him in remitting money from the Mainland to Hong Kong.The charges allege that the defendant dealt with 34 sums totalling about $50 million deposited to his two personal bank accounts by 12 companies and 11 persons, knowing or having reasonable grounds to believe that the sums in whole or in part directly or indirectly represented any person’s proceeds of indictable offence.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the 12 companies and 11 persons concerned had no business dealings with AHL and its subsidiaries, and were not their customers.The relevant investigation is continuing, the ICAC does not rule out further prosecution.
Jun 2024Eight months’ jail for then assistant manager of telecom company charged by ICAC for concealing conflict of interest over fibre installation service ordersA then assistant manager of a telecommunications company, charged by the ICAC, was today (June 19) sentenced to eight months’ imprisonment at the West Kowloon Magistrates’ Courts after being convicted of obtaining fibre installation service orders worth totalling $180,000 by concealing his interest in a contractor. The defendant was also found guilty of perversion for making false representation about his declaration made to the company during the Commission’s investigation.Chan Chun-kin, 44, former assistant manager of Technical & Service Support Department of i-CABLE Communications Limited (i-CABLE), was found guilty of three counts of obtaining pecuniary advantage by deception, contrary to section 18(1) of the Theft Ordinance; and one count of doing an act or a series of acts tending and intended to pervert the course of public justice, contrary to the Common Law.In sentencing, Magistrate Mr Jason Wan Siu-ming reprimanded the defendant for committing a premeditated crime repeatedly, which undermined the level-playing field of Hong Kong’s business sector and deprived other competitors of their opportunities to obtain contracts. A custodial sentence was imposed on the defendant in view of the serious nature of the offences.At the material time, the defendant was an assistant manager of Technical & Service Support Department of i-CABLE. He was responsible for monitoring and evaluating the service quality of contractors engaged by the department to conduct networking installation and maintenance works at customers’ premises and to make recommendation on the engagement of contractors.The policies of i-CABLE stipulated that all employees should avoid actual or potential conflict of interest and that they should fill in and submit declaration forms to declare their conflict of interest in writing to the management.The court heard that in May 2022, Lokkin Engineering Limited (Lokkin) was engaged by i-CABLE as a contractor for fibre installation works upon the defendant’s recommendation. Lokkin was subsequently awarded three service orders of fibre installation for three residential estates worth totalling about $180,000 between May and August 2022.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the defendant had instructed a friend to set up Lokkin in 2021 with a view to taking up networking installation and maintenance works of i-CABLE, and to open bank accounts for Lokkin.On the i-CABLE supplier registration form prepared by the defendant, it was declared that the friend was the sole director-cum-shareholder of Lokkin. It was concealed that the defendant was the beneficial owner and operator of Lokkin.The court heard that between mid-September and early October 2022, after the defendant had been arrested by the ICAC, he intended to pervert the course of public justice by making a false representation to i-CABLE that he had submitted a declaration form to the company in late 2021 to declare his role in Lokkin.i-CABLE had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Mark Wei, assisted by ICAC officers Chris Lai and William Wong.An ICAC spokesperson notes that perverting the course of public justice is a serious offence. An offender is liable on conviction to an imprisonment for any term and a fine of any amount. Should such illegal acts be found in ICAC cases, the Commission would not tolerate them and would follow up on them in a serious manner. 19
Jun 2024Ex-manager of telecom company charged by ICAC admits at High Court HK$16m fraud by concealing mother’s role in supplierA former manager of a telecommunications company, charged by the ICAC, today (June 19) admitted at the Court of First Instance of the High Court that he had deceived the company into issuing purchase orders worth totalling over HK$30 million and making service payments totalling over HK$16 million to a supplier owned by his mother by concealing his conflict of interest.Cheung Cheuk-man, 46, former manager of PCCW Services Limited (PCCW Services), a subsidiary of PCCW Limited (PCCW), today pleaded guilty to one count of fraud, contrary to section 16A(1) of the Theft Ordinance. Ms Justice Esther Toh Lye-ping adjourned the case to tomorrow (June 20) for mitigation and sentence.The court heard that in November 2014, the defendant was employed by PCCW Services to work as a manager of the network service team of PCCW Solutions Limited (PCCW Solutions), another subsidiary of PCCW, which provided a wide range of information technology and network solutions to its clients. PCCW’s policy stipulated that its employees and subsidiaries must make declarations where potential conflicts of interest arose.Upon the defendant’s recommendation, Go Go Wifi Limited (GGWL) was included in the list of approved suppliers of PCCW and its subsidiaries since January 2016. Between January 2016 and July 2017, the defendant procured PCCW Solutions to issue 29 purchase orders in the sum of over HK$30 million to GGWL, which subsequently received payments of about HK$8.7 million and about US$990,000 from PCCW Solutions.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the defendant’s mother had become the sole director cum shareholder of GGWL since August 2014, but he had never disclosed to his employer his mother’s interests in GGWL.The defendant was responsible for obtaining quotations and confirming receipt of services before release of payments to GGWL for the 29 purchase orders. ICAC enquiries revealed that the defendant had used false quotations purportedly issued by other companies to procure awarding the contracts to GGWL by making it the lowest bidder. On various occasions, the defendant had confirmed to PCCW Solutions in writing that he had no conflict of interest in the purchases concerned.It was also revealed in the ICAC investigation that GGWL had never provided any service in relation to the 29 purchase orders. The services concerned were either provided by other service suppliers or carried out internally by PCCW Solutions.The prosecution earlier withdrew a charge of “money-laundering” against the defendant’s mother, Lee Po-mei, 67.PCCW and its subsidiaries 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 Wilson Lam.The ICAC encourages public and private organisations to establish clear guidelines and systems of declaration on conflict of interest. Staff should 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. 18
Jun 2024Businessman charged by ICAC for laundering RMB 400mA businessman was charged by the ICAC yesterday (June 17) for allegedly laundering crime proceeds totalling over RMB 400 million through a bank account in Hong Kong.Tan Kim Chwee, 60, faces one count of dealing with property known or believed to represent proceeds of indictable offence, contrary to section 25(1) of the Organized and Serious Crimes Ordinance. He was released on ICAC bail, pending his appearance at the Eastern Magistrates’ Courts tomorrow (June 19) for mention.The charge alleges that between February and September 2020, the defendant dealt with two sums totalling over RMB 400 million in his bank account held with a bank in Hong Kong, knowing or having reasonable grounds to believe that the sums in whole or in part directly or indirectly represented any person’s proceeds of an indictable offence.The ICAC investigation arose from a corruption complaint. Enquiries revealed the defendant’s alleged involvement in illegal activities by assisting another man to hold the shares of a company between 2013 and 2020, and using the defendant’s bank account in Hong Kong to receive sums totalling over RMB 400 million between February and September 2020 after the shares were sold.The relevant investigation is continuing, the ICAC does not rule out laying more charges against the defendant.The bank concerned has rendered full assistance to the ICAC during its investigation into the case. 14
Jun 2024ICAC operation ‘Gale’: 20 arrested in connection with alleged bribery for falsifying car testing centre’s annual examination resultsIn an operation codenamed “Gale” mounted early last week, the ICAC arrested 20 people, including staff members of a designated car testing centre (DCTC) in the New Territories, for their suspected involvement in a bribery scam that facilitated a number of private cars to pass the annual vehicle examination by circumventing the examination procedures of the Transport Department (TD).Eighteen of the arrestees, all male, aged between 27 and 69, are respectively 10 staff members of a DCTC, four proprietors of three garages, and four middlemen. The 10 DCTC staff members are four responsible persons (RPs) and six approved car testers (ACTs); one of the RPs is also the manager of the DCTC.In the operation, search warrants were executed by ICAC officers to conduct searches at various premises, including the DCTC, as well as offices and places of business of the garages. A total of 10 private cars were seized and over 10 individuals, including the car owners concerned, were also interviewed by ICAC officers.According to the Road Traffic Ordinance, all private cars manufactured for six years or more are required to undergo an annual examination at a DCTC appointed by the TD. ACTs are responsible for conducting the annual vehicle examination under the supervision of RPs, and issuing a certificate of roadworthiness for each vehicle which has passed the examination for the car owner to renew its licence.The ICAC investigation arose from corruption complaints in relation to annual vehicle examination. The complaints concern allegations in relation to staff members of the DCTC accepting bribes from the proprietors of the three garages or the middlemen to fraudulently facilitate private cars not meeting the relevant standards to pass the annual vehicle examination, contravening section 9 of the Prevention of Bribery Ordinance and other relevant legislation.The ICAC investigation identified that the private cars concerned were referred by the three garages to the DCTC for conducting the annual vehicle examination. In particular, it was revealed that the scam involved falsified results of the smoke emission test. Other test results relating to safety issues were believed to be unaffected.The arrested DCTC staff members are suspected of accepting bribes for substituting the results of private cars passing the smoke emission test as purported results for cars which failed the test.The 10 private cars seized in the operation were sent to the TD for re-examination. All 10 private cars failed the annual vehicle examination and it was revealed that the exhaust system of some of the cars had been altered.Investigation so far revealed that the car owners concerned engaged the three garages for the annual vehicle examination. The ICAC is looking into their knowledge of the scam.Also arrested in the operation were two contract staff of the TD. Although the duo did not discharge any car-testing duties, they were suspected of accepting advantages from one of the responsible persons of the DCTC for tipping him off about possible ICAC investigation of the DCTC.All arrestees have been released on ICAC bail. As the ICAC corruption inquiries are ongoing, further law enforcement actions will not be ruled out. No further comment on the case will be made by the Commission at this stage.The TD has rendered full assistance to the ICAC during its investigation. The ICAC has offered corruption prevention advice on vehicle inspection arrangements at DCTCs. Following the findings of this case, the ICAC and the TD will review the relevant procedures and strengthen supervision of DCTCs so as to stamp out malpractices. 13
Jun 2024Asset management firm owner charged by ICAC for laundering $50 millionAn owner of an asset management company was charged by the ICAC yesterday (June 12) for allegedly laundering crime proceeds of about $50 million through a number of companies and individuals.Xiao Rui, 35, an owner of Augustine Holdings Limited (AHL), faces two counts of dealing with property known or believed to represent proceeds of indictable offence, contrary to Section 25(1) of the Organized and Serious Crimes Ordinance. He was released on ICAC bail, pending his appearance at the Eastern Magistrates’ Courts tomorrow (June 14) for mention.The offences took place between March 2016 and November 2023. At the material time, the defendant and two other persons jointly set up AHL. The company was engaged in asset management business and had three subsidiaries. In 2016, the defendant requested one of the AHL owners who was familiar with the operation of underground money changers to assist him in remitting money from the Mainland to Hong Kong.The charges allege that the defendant dealt with 34 sums totalling about $50 million deposited to his two personal bank accounts by 12 companies and 11 persons, knowing or having reasonable grounds to believe that the sums in whole or in part directly or indirectly represented any person’s proceeds of indictable offence.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the 12 companies and 11 persons concerned had no business dealings with AHL and its subsidiaries, and were not their customers.The relevant investigation is continuing, the ICAC does not rule out further prosecution.