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Jun 2024Company director charged by ICAC for using fake identity to open bank accountsA company director was charged by the ICAC yesterday (June 11) for allegedly obtaining services by deception by using a fake identity to open a number of bank accounts at two banks.The ICAC investigation stemmed from a corruption complaint alleging manipulation of share prices of listed companies, leading to an operation jointly mounted by the ICAC and the Securities and Futures Commission in August last year. Subsequent ICAC investigation revealed the offences in the present case. The company director was charged by the ICAC yesterday after seeking legal advice from the Department of Justice. The original corruption investigation is continuing that the ICAC does not rule out further prosecution.Fang Siyuan, 37, faces two counts of obtaining services by deception, contrary to section 18A(1) of the Theft Ordinance. He was released on ICAC bail, pending his appearance in the Eastern Magistrates’ Courts tomorrow (June 13) for mention. The prosecution will later apply to transfer the case to the District Court for plea.In November 2020 and September 2021, the defendant respectively met with staff members of two banks for opening personal bank accounts.The charges allege that the defendant dishonestly obtained services from the two banks by deception, namely opening eight personal bank accounts, including a securities account, by falsely representing that he was Fong Tim who was holding a Mexican passport.In the account opening process, the defendant presented the passport to bank staff and signed to confirm that the information he provided was true and correct. The ICAC investigation revealed that the name and date of birth shown on the passport differed from the information shown on other identity documents of the defendant.Had the two banks known that the defendant had identities bearing different names and dates of birth, they would not have approved his account opening applications.The two banks concerned have rendered full assistance to the ICAC during its investigation into the case. 11
Jun 2024Two women charged by ICAC jailed for bribing bank employee over account openingTwo women, charged by the ICAC, were today (June 11) sentenced to four weeks’ imprisonment at the Eastern Magistrates’ Courts after admitting that they had bribed a bank employee with a wad of banknotes for opening a personal bank account.Yu Hui, 26, executive; and Wang Jinyu, 37, live-streaming technician, today pleaded guilty to one count of offering advantage to an agent, contrary to section 9(2)(a) of the Prevention of Bribery Ordinance. Principal Magistrate Mr Don So Man-lung handed down a four-week jail term on both defendants.The court heard that Yu and Wang came to Hong Kong and visited a branch of The Hongkong and Shanghai Banking Corporation Limited (HSBC) in Wan Chai in the morning of April 19, 2024 for opening personal bank accounts. Wang, assisted by an employee of the bank, completed the account opening procedure through a mobile application of the bank on the same day. Since Yu was unable to open a bank account through the mobile application, her account opening application was not immediately approved.On the same day, the defendants met with the bank employee again in the afternoon, requesting to open a bank account for Yu through conventional in person application. When the duo submitted the relevant documents, they passed an envelope containing a wad of HK$100 and HK$500 banknotes to the bank employee.The bank employee immediately rejected the bribes offered by the duo and reported the matter to his supervisors immediately. ICAC officers arrested the two defendants on the spot immediately after receiving a corruption complaint.HSBC had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officer Benny Chang.The ICAC reminds the public not to bribe bank staff in exchange for its services. Should anyone come across any suspicion of corruption, he or she should report to the ICAC immediately. ICAC 24-hour Report Corruption Hotline: 25 266 366. 11
Jun 2024Six people charged by ICAC for bribery involving landfill contractor staff for free disposal of construction wasteThe ICAC today (June 11) charged four employees of a contractor of the Environmental Protection Department (EPD) and two staff of a waste disposal company for allegedly offering and accepting advantages of laisees, coupons and drinks for assisting the company to unload construction waste to a landfill free of charge by disguising the waste loaded on trucks as non-construction waste and conspiracy to defraud the EPD.The six defendants, aged between 31 and 66, are four employees of a contractor of the EPD, namely tipping face waste inspector of Far East Landfill Technologies Limited (Far East) Mak Wah-sing and three weighbridge operators of Far East – Chung Pui-chun, Cheung Kam-ning and Chung Ching-kwan. The two employees of the disposal company concerned are Mak Kim-kwan and Lin Wenjian, respectively truck driver and worker of T.S. Industrial Materials Recycle Limited (TSL).The six people jointly face one count of conspiracy to defraud, contrary to Common Law. Mak Kim-kwan alone faces four counts of offering an advantage to an agent, contrary to Section 9(2)(a) of the Prevention of Bribery Ordinance (POBO). Meanwhile, Mak Wah-sing, Chung Pui-chun and Cheung Kam-ning each faces one count of agent accepting an advantage, contrary to Section 9(1)(a) of the POBO.All defendants were released on ICAC bail, pending their appearance in the Eastern Magistrates’ Courts on Thursday (June 13) for mention. The prosecution will apply to transfer the case to the District Court for plea.At the material time, Far East was engaged by the EPD to operate a landfill in Fanling for disposal of construction waste and non-construction waste, including municipal waste. Trucks disposing construction waste were required to use the construction waste entrance and produce chits issued by the EPD to weighbridge operators for settling the disposal charge, which was $200 per tonne. Meanwhile, disposal of non-construction waste was free of charge.Weighbridge operators of Far East would conduct routine inspection on trucks using the non-construction waste entrance and weigh those trucks to verify whether construction waste was loaded on them. EPD staff would also conduct ambush inspections on trucks entering the landfill.TSL was a waste disposal company which operated a waste recycling site in Fanling. It conveyed construction waste to the landfill for its client.It is alleged that between January 2021 and June 2022, the six defendants conspired together to defraud the EPD by dishonestly disguising construction waste to be unloaded by trucks of TSL as non-construction waste for disposal; alerting in advance Mak Kim-kwan when inspection was to be carried out by the EPD and enabling trucks of TSL to evade payments for disposal of construction waste at the landfill.In the abovementioned one and a half years, Mak Kim-kwan allegedly offered laisees, coupons and bottled drinks to four employees of Far East, including Mak Wah-sing, Chung Pui-chun and Cheung Kam-ning, so as to alert him in advance when the EPD was to carry out inspections and facilitated construction waste conveyed to the landfill by trucks of TSL to be disposed of without payment of the required fees. Meanwhile, Mak Wah-sing, Chung Pui-chun and Cheung Kam-ning allegedly accepted those advantages from Mak Kim-kwan.The ICAC investigation arose from a corruption complaint. Enquiries revealed that at the material time, TSL offered laisees, mooncake coupons and rice dumpling coupons worth totalling about $50,000 to Far East staff, and provided a large quantity of non-alcoholic bottled drinks to Far East staff on a daily basis.ICAC enquiries also revealed that non-construction waste was used to cover construction waste loaded on TSL trucks. By pretending that its trucks were uploading non-construction waste, TSL evaded making the relevant waste disposal payments.In around a month between mid-May and mid-June 2022, TSL declared to the EPD that it had conveyed non-construction waste on about 760 occasions. ICAC enquiries revealed that about 90 per cent of the trucks were disguised as carrying non-construction waste. A total of over 4,100 tonnes of construction waste, incurring disposal charge of over $830,000, were in fact loaded on the trucks.The EPD and Far East have rendered full assistance to the ICAC during its investigation into the case.The ICAC reminds staff of business organisations not to be tempted by trivial advantages and breach the law inadvertently. According to the Prevention of Bribery Ordinance, an advantage includes, irrespective of the value, any money, gift, loan, contract and services, etc. Offeror and recipient of the bribe may breach the law as long as a corrupt motive is involved. 07
Jun 2024Then consultant director charged by ICAC jailed for two and a half years for fraud in Bridge Project false concrete cube test records caseA then director of an engineering consultant of the Civil Engineering and Development Department (CEDD), charged by the ICAC, was today (June 7) sentenced to two and a half years’ imprisonment at the District Court for defrauding the CEDD of a payment of about $2 million by concealing that its staff had falsified concrete cube test records in the Hong Kong-Zhuhai-Macao Bridge (HZMB) Hong Kong Project. The 19 convicted laboratory staff concerned were earlier sentenced for their roles in the scheme.Albert Leung Wing-keung, 67, then director of operations of Jacobs China Limited (JCL), was earlier found guilty of one count of fraud, contrary to Section 16A of the Theft Ordinance.In sentencing, Judge Ms Ada Yim Shun-yee said the offence committed by the defendant was serious in nature. It heavily undermined public confidence in the quality of the HZMB Hong Kong Project and the city’s construction works. An immediate custodial sentence of two and a half years was imposed on the defendant, having considered his mitigating factors.The court heard that in 2012, the CEDD established the Public Works Regional Laboratory at Siu Ho Wan (the Laboratory) to meet the demand for construction materials compliance tests arising from the HZMB Hong Kong Project. The CEDD outsourced the management and operation of the Laboratory to JCL under a consultancy agreement.Pursuant to the agreement, JCL was fully responsible for the quality of the testing services at the Laboratory and was required to strictly follow the standard testing procedures accredited under the Hong Kong Laboratory Accreditation Scheme. JCL was required to report to the CEDD any errors in the performance of services which came to its knowledge. The CEDD would withhold making payments to JCL should the latter fail to comply with the terms stipulated in the agreement.At the material time, the defendant was responsible for overseeing JCL’s projects in Hong Kong, including the above consultancy agreement. The laboratory staff were tasked to conduct construction material compliance tests, including concrete compression tests (CCTs) on concrete cubes.Two Principal Technical Officers (PTOs) of the CEDD were posted to the laboratory at different periods to oversee the services provided by JCL and to act as the Approved Signatory for issuing accredited reports on the tests conducted at the laboratory under the Hong Kong Laboratory Accreditation Scheme (HOKLAS).The ICAC investigation arose from a corruption complaint referred by the CEDD. It was revealed that the laboratory failed to conduct CCTs in accordance with CEDD’s requirements since around 2013. Between January 2013 and July 2016, a number of laboratory staff conspired together to resort to a deceptive practice of manipulating the date and time of the computers connected to the compression machines, and using substitutes such as high strength concrete cubes and a metal calibration cylinder to carry out CCTs.Believing the information contained in the reports of CCTs were genuine, the two PTOs certified those reports under the HOKLAS.The court heard that the defendant deliberately concealed the false concrete cube test scheme from the CEDD, and induced the department to release a payment of around $2 million to JCL. Should the CEDD known the scheme, it would not have released the payment to JCL.The 19 laboratory staff concerned were earlier convicted of conspiracy to defraud and using false instruments. They were sentenced to jail terms ranged from eight months to two years.The CEDD, the Highways Department and the Transport and Housing Bureau (now known as Transport and Logistics Bureau) had rendered full assistance to the ICAC in its investigation into the case.The prosecution was today represented by prosecuting counsel Eddie Sean, assisted by ICAC officers Carrie Ng and Vanessa Ho. 01
Jun 2024Then consultant director charged by ICAC guilty of fraud in Bridge Project false concrete cube test records caseA then director of an engineering consultant of the Civil Engineering and Development Department (CEDD), charged by the ICAC, was today (June 1) convicted at the District Court of defrauding the CEDD of a payment of about $2 million by concealing that its staff had falsified concrete cube test records. The 19 convicted laboratory staff concerned were earlier sentenced in separate trials for their roles in the scheme.Albert Leung Wing-keung, 67, then director of operations of Jacobs China Limited (JCL), was found guilty of one count of fraud, contrary to Section 16A of the Theft Ordinance.Judge Ms Ada Yim Shun-yee adjourned the case to June 7 for mitigation and sentence. The defendant was remanded in custody of the Correctional Services Department.The court heard that in 2012, the CEDD established the Public Works Regional Laboratory at Siu Ho Wan (the Laboratory) to meet the demand for construction materials compliance tests arising from the HZMB Hong Kong Project. The CEDD outsourced the management and operation of the Laboratory to JCL under a consultancy agreement.Pursuant to the agreement, JCL was fully responsible for the quality of the testing services at the Laboratory and was required to strictly follow the standard testing procedures accredited under the Hong Kong Laboratory Accreditation Scheme. JCL was required to report to the CEDD any errors in the performance of services which came to its knowledge. The CEDD would withhold making payments to JCL should the latter fail to comply with the terms stipulated in the agreement.At the material time, the defendant was responsible for overseeing JCL’s projects in Hong Kong, including the above consultancy agreement. The laboratory staff were tasked to conduct construction material compliance tests, including concrete compression tests (CCTs) on concrete cubes.Two Principal Technical Officers (PTOs) of the CEDD were posted to the laboratory at different periods to oversee the services provided by JCL and to act as the Approved Signatory for issuing accredited reports on the tests conducted at the laboratory under the Hong Kong Laboratory Accreditation Scheme (HOKLAS).The ICAC investigation arose from a corruption complaint referred by the CEDD. It was revealed that the laboratory failed to conduct CCTs in accordance with CEDD’s requirements since around 2013. Between January 2013 and July 2016, a number of laboratory staff conspired together to resort to a deceptive practice of manipulating the date and time of the computers connected to the compression machines, and using substitutes such as high strength concrete cubes and a metal calibration cylinder to carry out CCTs.Believing the information contained in the reports of CCTs were genuine, the two PTOs certified those reports under the HOKLAS.The court heard that the defendant deliberately concealed the false concrete cube test scheme from the CEDD, and induced the department to release a payment of around $2 million to JCL. Should the CEDD known the scheme, it would not have released the payment to JCL.The 19 laboratory staff concerned were earlier convicted of conspiracy to defraud and using false instruments. They were sentenced to jail terms ranged from eight months to two years.The CEDD, the Highways Department and the Transport and Housing Bureau (now known as Transport and Logistics Bureau) had rendered full assistance to the ICAC in its investigation into the case.The prosecution was today represented by prosecuting counsel Eddie Sean, assisted by ICAC officers Adrian Yeung and Carrie Ng.
Jun 2024Company director charged by ICAC for using fake identity to open bank accountsA company director was charged by the ICAC yesterday (June 11) for allegedly obtaining services by deception by using a fake identity to open a number of bank accounts at two banks.The ICAC investigation stemmed from a corruption complaint alleging manipulation of share prices of listed companies, leading to an operation jointly mounted by the ICAC and the Securities and Futures Commission in August last year. Subsequent ICAC investigation revealed the offences in the present case. The company director was charged by the ICAC yesterday after seeking legal advice from the Department of Justice. The original corruption investigation is continuing that the ICAC does not rule out further prosecution.Fang Siyuan, 37, faces two counts of obtaining services by deception, contrary to section 18A(1) of the Theft Ordinance. He was released on ICAC bail, pending his appearance in the Eastern Magistrates’ Courts tomorrow (June 13) for mention. The prosecution will later apply to transfer the case to the District Court for plea.In November 2020 and September 2021, the defendant respectively met with staff members of two banks for opening personal bank accounts.The charges allege that the defendant dishonestly obtained services from the two banks by deception, namely opening eight personal bank accounts, including a securities account, by falsely representing that he was Fong Tim who was holding a Mexican passport.In the account opening process, the defendant presented the passport to bank staff and signed to confirm that the information he provided was true and correct. The ICAC investigation revealed that the name and date of birth shown on the passport differed from the information shown on other identity documents of the defendant.Had the two banks known that the defendant had identities bearing different names and dates of birth, they would not have approved his account opening applications.The two banks concerned have rendered full assistance to the ICAC during its investigation into the case. 11
Jun 2024Two women charged by ICAC jailed for bribing bank employee over account openingTwo women, charged by the ICAC, were today (June 11) sentenced to four weeks’ imprisonment at the Eastern Magistrates’ Courts after admitting that they had bribed a bank employee with a wad of banknotes for opening a personal bank account.Yu Hui, 26, executive; and Wang Jinyu, 37, live-streaming technician, today pleaded guilty to one count of offering advantage to an agent, contrary to section 9(2)(a) of the Prevention of Bribery Ordinance. Principal Magistrate Mr Don So Man-lung handed down a four-week jail term on both defendants.The court heard that Yu and Wang came to Hong Kong and visited a branch of The Hongkong and Shanghai Banking Corporation Limited (HSBC) in Wan Chai in the morning of April 19, 2024 for opening personal bank accounts. Wang, assisted by an employee of the bank, completed the account opening procedure through a mobile application of the bank on the same day. Since Yu was unable to open a bank account through the mobile application, her account opening application was not immediately approved.On the same day, the defendants met with the bank employee again in the afternoon, requesting to open a bank account for Yu through conventional in person application. When the duo submitted the relevant documents, they passed an envelope containing a wad of HK$100 and HK$500 banknotes to the bank employee.The bank employee immediately rejected the bribes offered by the duo and reported the matter to his supervisors immediately. ICAC officers arrested the two defendants on the spot immediately after receiving a corruption complaint.HSBC had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officer Benny Chang.The ICAC reminds the public not to bribe bank staff in exchange for its services. Should anyone come across any suspicion of corruption, he or she should report to the ICAC immediately. ICAC 24-hour Report Corruption Hotline: 25 266 366. 11
Jun 2024Six people charged by ICAC for bribery involving landfill contractor staff for free disposal of construction wasteThe ICAC today (June 11) charged four employees of a contractor of the Environmental Protection Department (EPD) and two staff of a waste disposal company for allegedly offering and accepting advantages of laisees, coupons and drinks for assisting the company to unload construction waste to a landfill free of charge by disguising the waste loaded on trucks as non-construction waste and conspiracy to defraud the EPD.The six defendants, aged between 31 and 66, are four employees of a contractor of the EPD, namely tipping face waste inspector of Far East Landfill Technologies Limited (Far East) Mak Wah-sing and three weighbridge operators of Far East – Chung Pui-chun, Cheung Kam-ning and Chung Ching-kwan. The two employees of the disposal company concerned are Mak Kim-kwan and Lin Wenjian, respectively truck driver and worker of T.S. Industrial Materials Recycle Limited (TSL).The six people jointly face one count of conspiracy to defraud, contrary to Common Law. Mak Kim-kwan alone faces four counts of offering an advantage to an agent, contrary to Section 9(2)(a) of the Prevention of Bribery Ordinance (POBO). Meanwhile, Mak Wah-sing, Chung Pui-chun and Cheung Kam-ning each faces one count of agent accepting an advantage, contrary to Section 9(1)(a) of the POBO.All defendants were released on ICAC bail, pending their appearance in the Eastern Magistrates’ Courts on Thursday (June 13) for mention. The prosecution will apply to transfer the case to the District Court for plea.At the material time, Far East was engaged by the EPD to operate a landfill in Fanling for disposal of construction waste and non-construction waste, including municipal waste. Trucks disposing construction waste were required to use the construction waste entrance and produce chits issued by the EPD to weighbridge operators for settling the disposal charge, which was $200 per tonne. Meanwhile, disposal of non-construction waste was free of charge.Weighbridge operators of Far East would conduct routine inspection on trucks using the non-construction waste entrance and weigh those trucks to verify whether construction waste was loaded on them. EPD staff would also conduct ambush inspections on trucks entering the landfill.TSL was a waste disposal company which operated a waste recycling site in Fanling. It conveyed construction waste to the landfill for its client.It is alleged that between January 2021 and June 2022, the six defendants conspired together to defraud the EPD by dishonestly disguising construction waste to be unloaded by trucks of TSL as non-construction waste for disposal; alerting in advance Mak Kim-kwan when inspection was to be carried out by the EPD and enabling trucks of TSL to evade payments for disposal of construction waste at the landfill.In the abovementioned one and a half years, Mak Kim-kwan allegedly offered laisees, coupons and bottled drinks to four employees of Far East, including Mak Wah-sing, Chung Pui-chun and Cheung Kam-ning, so as to alert him in advance when the EPD was to carry out inspections and facilitated construction waste conveyed to the landfill by trucks of TSL to be disposed of without payment of the required fees. Meanwhile, Mak Wah-sing, Chung Pui-chun and Cheung Kam-ning allegedly accepted those advantages from Mak Kim-kwan.The ICAC investigation arose from a corruption complaint. Enquiries revealed that at the material time, TSL offered laisees, mooncake coupons and rice dumpling coupons worth totalling about $50,000 to Far East staff, and provided a large quantity of non-alcoholic bottled drinks to Far East staff on a daily basis.ICAC enquiries also revealed that non-construction waste was used to cover construction waste loaded on TSL trucks. By pretending that its trucks were uploading non-construction waste, TSL evaded making the relevant waste disposal payments.In around a month between mid-May and mid-June 2022, TSL declared to the EPD that it had conveyed non-construction waste on about 760 occasions. ICAC enquiries revealed that about 90 per cent of the trucks were disguised as carrying non-construction waste. A total of over 4,100 tonnes of construction waste, incurring disposal charge of over $830,000, were in fact loaded on the trucks.The EPD and Far East have rendered full assistance to the ICAC during its investigation into the case.The ICAC reminds staff of business organisations not to be tempted by trivial advantages and breach the law inadvertently. According to the Prevention of Bribery Ordinance, an advantage includes, irrespective of the value, any money, gift, loan, contract and services, etc. Offeror and recipient of the bribe may breach the law as long as a corrupt motive is involved. 07
Jun 2024Then consultant director charged by ICAC jailed for two and a half years for fraud in Bridge Project false concrete cube test records caseA then director of an engineering consultant of the Civil Engineering and Development Department (CEDD), charged by the ICAC, was today (June 7) sentenced to two and a half years’ imprisonment at the District Court for defrauding the CEDD of a payment of about $2 million by concealing that its staff had falsified concrete cube test records in the Hong Kong-Zhuhai-Macao Bridge (HZMB) Hong Kong Project. The 19 convicted laboratory staff concerned were earlier sentenced for their roles in the scheme.Albert Leung Wing-keung, 67, then director of operations of Jacobs China Limited (JCL), was earlier found guilty of one count of fraud, contrary to Section 16A of the Theft Ordinance.In sentencing, Judge Ms Ada Yim Shun-yee said the offence committed by the defendant was serious in nature. It heavily undermined public confidence in the quality of the HZMB Hong Kong Project and the city’s construction works. An immediate custodial sentence of two and a half years was imposed on the defendant, having considered his mitigating factors.The court heard that in 2012, the CEDD established the Public Works Regional Laboratory at Siu Ho Wan (the Laboratory) to meet the demand for construction materials compliance tests arising from the HZMB Hong Kong Project. The CEDD outsourced the management and operation of the Laboratory to JCL under a consultancy agreement.Pursuant to the agreement, JCL was fully responsible for the quality of the testing services at the Laboratory and was required to strictly follow the standard testing procedures accredited under the Hong Kong Laboratory Accreditation Scheme. JCL was required to report to the CEDD any errors in the performance of services which came to its knowledge. The CEDD would withhold making payments to JCL should the latter fail to comply with the terms stipulated in the agreement.At the material time, the defendant was responsible for overseeing JCL’s projects in Hong Kong, including the above consultancy agreement. The laboratory staff were tasked to conduct construction material compliance tests, including concrete compression tests (CCTs) on concrete cubes.Two Principal Technical Officers (PTOs) of the CEDD were posted to the laboratory at different periods to oversee the services provided by JCL and to act as the Approved Signatory for issuing accredited reports on the tests conducted at the laboratory under the Hong Kong Laboratory Accreditation Scheme (HOKLAS).The ICAC investigation arose from a corruption complaint referred by the CEDD. It was revealed that the laboratory failed to conduct CCTs in accordance with CEDD’s requirements since around 2013. Between January 2013 and July 2016, a number of laboratory staff conspired together to resort to a deceptive practice of manipulating the date and time of the computers connected to the compression machines, and using substitutes such as high strength concrete cubes and a metal calibration cylinder to carry out CCTs.Believing the information contained in the reports of CCTs were genuine, the two PTOs certified those reports under the HOKLAS.The court heard that the defendant deliberately concealed the false concrete cube test scheme from the CEDD, and induced the department to release a payment of around $2 million to JCL. Should the CEDD known the scheme, it would not have released the payment to JCL.The 19 laboratory staff concerned were earlier convicted of conspiracy to defraud and using false instruments. They were sentenced to jail terms ranged from eight months to two years.The CEDD, the Highways Department and the Transport and Housing Bureau (now known as Transport and Logistics Bureau) had rendered full assistance to the ICAC in its investigation into the case.The prosecution was today represented by prosecuting counsel Eddie Sean, assisted by ICAC officers Carrie Ng and Vanessa Ho. 01
Jun 2024Then consultant director charged by ICAC guilty of fraud in Bridge Project false concrete cube test records caseA then director of an engineering consultant of the Civil Engineering and Development Department (CEDD), charged by the ICAC, was today (June 1) convicted at the District Court of defrauding the CEDD of a payment of about $2 million by concealing that its staff had falsified concrete cube test records. The 19 convicted laboratory staff concerned were earlier sentenced in separate trials for their roles in the scheme.Albert Leung Wing-keung, 67, then director of operations of Jacobs China Limited (JCL), was found guilty of one count of fraud, contrary to Section 16A of the Theft Ordinance.Judge Ms Ada Yim Shun-yee adjourned the case to June 7 for mitigation and sentence. The defendant was remanded in custody of the Correctional Services Department.The court heard that in 2012, the CEDD established the Public Works Regional Laboratory at Siu Ho Wan (the Laboratory) to meet the demand for construction materials compliance tests arising from the HZMB Hong Kong Project. The CEDD outsourced the management and operation of the Laboratory to JCL under a consultancy agreement.Pursuant to the agreement, JCL was fully responsible for the quality of the testing services at the Laboratory and was required to strictly follow the standard testing procedures accredited under the Hong Kong Laboratory Accreditation Scheme. JCL was required to report to the CEDD any errors in the performance of services which came to its knowledge. The CEDD would withhold making payments to JCL should the latter fail to comply with the terms stipulated in the agreement.At the material time, the defendant was responsible for overseeing JCL’s projects in Hong Kong, including the above consultancy agreement. The laboratory staff were tasked to conduct construction material compliance tests, including concrete compression tests (CCTs) on concrete cubes.Two Principal Technical Officers (PTOs) of the CEDD were posted to the laboratory at different periods to oversee the services provided by JCL and to act as the Approved Signatory for issuing accredited reports on the tests conducted at the laboratory under the Hong Kong Laboratory Accreditation Scheme (HOKLAS).The ICAC investigation arose from a corruption complaint referred by the CEDD. It was revealed that the laboratory failed to conduct CCTs in accordance with CEDD’s requirements since around 2013. Between January 2013 and July 2016, a number of laboratory staff conspired together to resort to a deceptive practice of manipulating the date and time of the computers connected to the compression machines, and using substitutes such as high strength concrete cubes and a metal calibration cylinder to carry out CCTs.Believing the information contained in the reports of CCTs were genuine, the two PTOs certified those reports under the HOKLAS.The court heard that the defendant deliberately concealed the false concrete cube test scheme from the CEDD, and induced the department to release a payment of around $2 million to JCL. Should the CEDD known the scheme, it would not have released the payment to JCL.The 19 laboratory staff concerned were earlier convicted of conspiracy to defraud and using false instruments. They were sentenced to jail terms ranged from eight months to two years.The CEDD, the Highways Department and the Transport and Housing Bureau (now known as Transport and Logistics Bureau) had rendered full assistance to the ICAC in its investigation into the case.The prosecution was today represented by prosecuting counsel Eddie Sean, assisted by ICAC officers Adrian Yeung and Carrie Ng.