Recent ICAC Cases


13
Nov 2023
Businesswoman absconded for seven years gets 11 months’ jail for bribing vice president of bankOne of the two directors of a trading company, who had absconded after being charged by the ICAC in 2015, was today (November 13) sentenced to 11 months’ imprisonment at the Eastern Magistrates’ Courts after admitting conspiracy to bribe a vice president of a bank over the acceptance of a standby letter of credit (L/C) in the amount of 500 million euros as collateral for granting its credit facility application.Huang Wei, 54, director of Tianhe International Commerce (China) Holdings Limited (Tianhe), today pleaded guilty to one count of conspiracy to offer an advantage to an agent, contrary to section 9(2)(a) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance.Huang today also pleaded guilty to an additional charge of failing to surrender to custody without reasonable cause, contrary to section 9L(1) of the Criminal Procedure Ordinance.In sentencing, Principal Magistrate Miss Ivy Chui Yee-mei remarked that Hong Kong was a clean society which did not tolerate corruption. The present case involved a standby L/C in the amount of 500 million euros and a bribe of HK$10,000 per month. In view of the serious nature of the case, the defendant deserved an immediate custodial sentence.The court heard that at the material time, Huang and Pan Shancheng were directors of Tianhe. They were both the authorised signatories of Tianhe’s bank account held with The Hongkong and Shanghai Banking Corporation Limited (HSBC).In April 2015, Huang and Pan discussed the loan matter of Tianhe with a vice president of Commercial Banking Department of HSBC. The duo said Tianhe would receive a standby L/C in the amount of 500 million euros and requested HSBC to receive it as collateral for granting a credit facility to Tianhe.HSBC accepted standby L/Cs to be used as collateral for granting credit facilities to clients, but the duo failed to provide the required documents for the bank’s assessment. In May 2015, the duo met with the VP of HSBC twice and requested the latter to assist in causing the bank to accept the standby L/C for Tianhe, adding that they would offer a monthly payment of HK$10,000 in return. The offer was turned down by the VP of HSBC.Huang and Pan were subsequently arrested by the ICAC, and were charged with conspiracy to offer bribes in November 25, 2015. They pleaded not guilty to the charge and a pre-trial review was scheduled for January 8, 2016 at the Eastern Magistrates’ Courts. The duo failed to appear before court and warrants for their arrests were issued. After absconding for over seven years, Huang was arrested by ICAC officers upon arriving Hong Kong in late June 2023.HSBC had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutor Claudia Ng, assisted by ICAC officer Emily Cheung.
10
Nov 2023
Ex-site team leader of Third Runway Project charged by ICAC gets eight months’ jail for accepting bribes over workers’ employmentA former site team leader of a sub-contractor of the Third Runway Project of the Hong Kong International Airport (Third Runway Project), charged by the ICAC, was today (November 10) sentenced to eight months’ imprisonment at the Kwun Tong Magistrates’ Courts for soliciting and accepting bribes totalling about $14,000 from two construction workers in relation to their employment with the sub-contractor.Ting Shi-tong, 62, former site team leader of MLife Engineering Limited (MEL), was earlier found guilty of seven charges after trial – six of agent accepting an advantage and one of agent soliciting an advantage, all contrary to section 9(1)(a) of the Prevention of Bribery Ordinance.In sentencing, Deputy Magistrate Miss Polly Chuang Po-yi reprimanded the defendant for showing no remorse at all and considered that there was a high risk of reoffending. The Deputy Magistrate noted that the Third Runway Project was a major project of Hong Kong. The defendant exploited the new blood in the construction industry and deprived them of their hard-earned money by taking advantage of the younger generation’s eagerness to find jobs. His acts had undermined the society’s probity culture and public confidence in equal employment opportunity, warranting a deterrent sentence.The deputy magistrate had also earlier ordered the defendant to pay the bribes involved in the case as restitutions to MEL.At the material time, MEL was a sub-contractor of the Third Runway Project responsible for recruiting construction workers to conduct various works. The defendant was a site team leader of a team of workers at the project’s construction site. In February 2022, two workers were respectively employed at a daily wage of $1,200 and $1,450 to join the defendant’s team to work at the construction site.The court heard that on various occasions between March and June 2022, the defendant had solicited a daily bribe of $150 from the two workers. The duo believed that they would not be employed or their employment would be terminated by the defendant if they did not accede to the request. The defendant eventually accepted from each of them a bribe of about $5,800 and $8,200, totalling about $14,000.The ICAC had so far charged 26 people, most of whom were site team leaders of a sub-contractor of the Third Runway Project, over bribery related to workers’ employment. Twenty defendants, including the one in the present case, had pleaded guilty or were found guilty after trial, receiving sentences up to 16 months in jail. Four others are awaiting plea or trial.The Airport Authority Hong Kong, the relevant main contractor SAPR JV and MEL had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Timmy Yip, assisted by ICAC officers Terry Ho and Cyrus Chan.In recent years, the ICAC has taken a series of enforcement actions against solicitation and acceptance of illegal rebates from construction workers and launched a series of relevant publicity and education programmes. An ICAC spokesperson urges construction workers not to tolerate corruption. Should they be asked to pay bribes in exchange for their employment, they should report to the ICAC immediately. ICAC’s report corruption hotline: 25 266 366.
08
Nov 2023
Ex-property management duo charged by ICAC for allegedly concealing conflict of interest in work orders worth $2.1mThe ICAC yesterday (November 7) charged two former technical staff of a property management company for allegedly deceiving the company into awarding various work orders worth totalling $2.1 million to a contractor set up by the duo who were uncle and cousin by concealing their conflict of interest and using false quotations. The conspiracy to defraud offences were revealed in the course of a corruption investigation by the Commission.Chu Kim-fai, 50, former assistant technical manager of New World Property Management Company Limited (NWP); and his nephew Chu Kam-yin, 31, former assistant technical officer of NWP, jointly face two counts of conspiracy to defraud, contrary to the Common Law.The defendants were released on ICAC bail, pending their appearance in the Eastern Magistrates’ Courts tomorrow (November 9) for mention. The prosecution will apply for transferring the case to the District Court for plea.The offences took place between September 2017 and October 2020, during which Chu Kim-fai was an assistant technical manager of NWP. He was responsible for supervising technical staff deployed at residential and commercial properties of NWP’s holding company, New World Development Company Limited (NWD), on Hong Kong Island and in Kowloon to handle maintenance works. His nephew Chu Kam-yin was also under his supervision.All employees of NWP had to abide by the “Conflict of Interest Policy” of NWD and were required to declare conflict of interest in procurement exercises. When outsourcing maintenance works, quotations from NWP’s listed contractors were invited and only one non-listed contractor was allowed to be invited.FNC (Creation) Limited (FNC) was not NWP’s listed contractor. Chu Kim-fai’s elder brother and the father of Chu Kam-yin was one of its operators.It is alleged that the two defendants conspired together to defraud NWP by concealing their involvement in the establishment and management of FNC and the interest of Chu Kim-fai or his elder brother in FNC, and with intent to defraud, induced NWP to award 72 work orders to FNC.The duo also allegedly conspired to use 114 sets of quotation documents purportedly issued by four listed contractors of NWP, and with intent to defraud, induced NWP to award 56 of the work orders to FNC.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the four contractors concerned had never submitted to NWP the quotation documents in relation to the work orders worth totalling over $2.1 million.NWD and NWP have rendered full assistance to the ICAC during its investigation into the case.The ICAC reminds staff of business organisations to avoid conflict of interest situations and to make timely declaration to their employers. Concealing any conflict of interest in relation to one’s official duties to benefit himself may contravene the criminal law. It may constitute a breach of the Prevention of Bribery Ordinance if offering and accepting of bribes are involved. The ICAC makes efforts to promote integrity to property management companies and practitioners, such as launching a multi-year programme on professional ethics and integrity, and producing educational materials to enhance practitioners' awareness on corruption prevention.
02
Nov 2023
Seven months’ jail for property agent charged by ICAC with bribery over claw machine shop’s rent concessions in pandemicA property agent charged by the ICAC was today (November 2) sentenced to seven months’ imprisonment at the Kowloon City Magistrates’ Courts for soliciting and accepting bribes totalling $41,000 for assisting a tenant operating a claw machine shop to negotiate with the landlord for rent concessions and lease renewal during the COVID-19 pandemic.Chung Sau-man, 57, former property agent of Land Master & Associates (Shop) Limited (Land Master), was earlier found guilty of six charges – three of agent accepting an advantage and one of agent soliciting for an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance; and two of incitement to furnish false information, contrary to the Common Law and section 19(1)(b) of the Theft Ordinance.In sentencing, Magistrate Mr Jacky Ip Kai-leung reprimanded the defendant for orchestrating a scam to collect bribes from the tenant on different pretexts, adding that a sentence proportionate to the seriousness of the offences should be imposed on the defendant. The magistrate also ordered the defendant to repay $21,000, being the bribes involved in the case, to her former employer as restitution.At the material time, Chung was a property agent of Land Master. Apart from procuring property transactions, she was responsible for providing post-transaction services to clients, including assisting them in the negotiation of rental adjustment or renewal of tenancy agreement. In general, Land Master would not charge its clients for the post-transaction services provided.The court heard that a tenant rented a shop in Mong Kok for operating claw machine business at a monthly rental of $140,000 for a year starting from December 2019. Chung was the handling agent of the lease transaction. In view of the pandemic situation, the tenant had requested Chung to assist in the negotiations with the landlord on rent concession since late March 2020.On various occasions between May and September 2020, Chung informed the tenant that the landlord had agreed to reduce the monthly rental of the shop, each ranging from a rental of 10 days to half of its monthly rental. Chung solicited a bribe from the tenant on each occasion and kept urging the latter to pay bribes despite the fact that her solicitation was repeatedly turned down. She eventually accepted three bribes totalling $21,000 from the tenant.In October 2020, the tenant also engaged Chung to negotiate with the landlord for renewing the lease. The rent was eventually renewed by the landlord for a year and Chung further solicited a bribe of $20,000 from the tenant.The court also heard that Chung gave five false receipts purportedly issued by a renovation contractor to the tenant and incited the tenant to use the receipts for the accounting purpose so as to cover up the bribe payments. The tenant did not use those receipts.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Land Master had never approved Chung to accept any rewards from the tenant, while the tenant had never engaged the renovation contractor, which was dissolved at the material time, to provide any services.Chung’s male associate, Ng Chi-hung, 58, estate agent, was also charged by the ICAC for falsifying three of the aforesaid receipts to facilitate Chung’s acceptance of bribes. He earlier pleaded guilty to one count of false accounting, and was sentenced to 160 hours of community service order.Land Master had rendered full assistance to the Commission during its investigation into the case.The prosecution was today represented by prosecuting counsel Joe Chan, assisted by ICAC officer Jayne Woo.
27
Oct 2023
Government works consultant staff charged by ICAC guilty of using false certificates in slope reportsThe ICAC earlier charged a former principal engineer of a government works consultant after a corruption investigation revealed that he had conspired to use false independent checking certificates and a false Ecological Appraisal Report in relation to three landslip prevention projects to deceive three government departments. The former principal engineer was today (October 27) convicted at the District Court after trial.Calvin Wong Ka-tsun, 47, former principal engineer of Jacobs China Limited (Jacobs China), was found guilty of four counts of conspiracy to use false instruments, contrary to sections 73 and 159A of the Crimes Ordinance.Judge Mr Eddie Yip Chor-man adjourned the case to November 15 for sentence. The defendant was remanded in the custody of the Correctional Services Department.Since 2010, Jacobs China had been engaged by the Civil Engineering and Development Department (CEDD) and the Highways Department (HyD) as the consultant of three landslip prevention and mitigation projects. For each project, Jacobs China was required to conduct inspections by assessing the conditions of around 100 to 300 man-made slopes and around 20 natural hillside catchments, to prepare relevant upgrading and mitigation works designs, and to oversee the construction works conducted by relevant contractors.Under the projects, Jacobs China was required to submit reports supported by Independent Checking Certificates in respect of the proposed upgrading and mitigation works to the two departments. An Independent Checking Certificate endorsed by an independent checking engineer was required to certify that the design by Jacobs China was in the interest of public safety and did not pose any potential landslide hazards.In one of the CEDD projects, Jacobs China was also required to submit an Ecological Appraisal Report to the Agriculture, Fisheries and Conservation Department (AFCD) to confirm the impact on any species of conservation importance within the proposed works site.The offences took place between March 2015 and August 2017. At the material time, the defendant was a principal engineer of Jacobs China responsible for the daily operation and management of the aforesaid CEDD and HyD projects, including submission of reports to the departments.The court heard that the defendant had conspired with three subordinates to use eight false Independent Checking Certificates purportedly signed by an independent checking engineer to induce staff of the CEDD and the HyD to accept them as genuine.The defendant also conspired with one of the aforesaid subordinates to use a false Ecological Appraisal Report purportedly issued by an ecological consultancy to induce staff of the AFCD to accept it as genuine.The ICAC investigation arose from corruption complaints referred by the CEDD and the HyD. Enquiries revealed that the aforesaid independent checking engineer and ecological consultancy had never signed or issued the documents concerned.Enquiries also found that after the incident was revealed, the relevant government departments had reviewed all the landslip prevention projects concerned and did not identify any safety issues.The CEDD, the HyD, the AFCD and other involved companies had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Eddie Sean, assisted by ICAC officer Winnie Fung.

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