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May 2025Logistics company’s coordinator charged by ICAC gets 31 months’ jail for $9.1m air cargo space orders fraud over conflicting interestA former coordinator of a logistics company, charged by the ICAC, was today (May 22) sentenced to 31 months’ imprisonment at the District Court for deceiving his then employer into placing air cargo space orders worth totalling over $9.1 million with carriers’ agents via two intermediaries associated with him and obtaining personal gain of over $1.2 million in total by concealing his conflicting interest.Wong Wing-ho, 42, former airfreight and business development coordinator of MBS Logistics Limited (MBS), earlier pleaded guilty to two counts of fraud, contrary to section 16A of the Theft Ordinance.In sentencing, Deputy Judge Miss Ivy Chui Yee-mei reprimanded the defendant for orchestrating the scam in less than six months after joining the logistics company, and even serving as the de facto operator of one of the intermediaries concerned. The deputy judge noted that the offences lasted over three years, and the defendant had obtained a substantial amount of personal gain and caused actual monetary losses to his then employer.The court heard that MBS was a local subsidiary of MBS Logistics Group, a worldwide logistics company which provided logistic services to its clients including placing air cargo space orders through different carriers’ agents. At the material time, the defendant was responsible for seeking quotations from carriers’ agents for clients, arranging delivery of clients’ goods to the agents, and submitting invoices of carriers’ agents to MBS for payment approval.The ICAC investigation arose from a corruption complaint. Enquiries revealed that between March 2016 and June 2019, the defendant had recommended MBS to place over 430 air cargo space orders with a carriers’ agent via two intermediaries, namely JTC Development Limited (JTC) and AK Logistics Limited (AKL), and to make payments totalling over $9.1 million to the two intermediaries.Enquiries by the ICAC found that JTC was set up by the defendant and individuals associated with him, while the defendant and his family members had financial interests in the company, which was set up by connected persons of the defendant, while company chop, cheque book and other company documents of JTC were seized by ICAC officers from the defendant’s residence.The investigation also revealed that it was agreed between the defendant and AKL that multilayer arrangements could be made for MBS to place orders with the carriers’ agent through JTC via AKL. In return, the defendant would pay a handling charge of around $50 to $100 per order to AKL.The defendant had made a personal gain of over $1.2 million in total out of the scam, but he had never disclosed to MBS his interests in JTC and his agreement with AKL over the orders.MBS rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutor Jason Lau, assisted by ICAC officer Raymond Lai.The ICAC advises business organisations to formulate clear guidelines and systems of declaraing conflict of interest. Staff members of business organisations are reminded 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 or his associates may constitute a breach of the Prevention of Bribery Ordinance or other criminal law. 21
May 2025ICAC operation ‘War Drum’ uncovers bribery and fraudulent claims over lax supervision of steel reinforcement works and conniving at works deviations at residential construction siteIn a recent law enforcement operation codenamed “War Drum”, the ICAC uncovered corruption and fraudulent claims of inspections at a construction site of a residential project in Kwun Tong. During the operation, ICAC officers arrested 10 men, aged between 29 and 52. They were alleged to have bribed an employee of the main contractor and resident site supervision staff of an engineering consultancy firm, who were responsible for overseeing the construction works of the project, for lax supervision of steel reinforcement works carried out by subcontractors, as well as conniving at works deviated from the building plans.Among the 10 arrestees were an employee of the main contractor and five proprietors, operators or employees of subcontractors. The remaining four arrestees were resident site supervision staff of the consultancy firm. They had allegedly committed offences including bribery, conspiracy to defraud and using false documents.Various premises were searched by ICAC officers in the operation, including the construction site concerned, the offices of the main contractor, subcontractors and engineering consultancy firm, as well as residences of the arrestees. A large number of relevant works documents were seized, such as procurement documents of construction materials, workers’ salary payment records and inspection reports on works quality.The construction site involved in the present case is a private residential project at Anderson Road, Kwun Tong, which is still under construction. The developer has been ordered by the Buildings Department (BD) to suspend construction works.The ICAC investigation arose from a corruption complaint. Enquiries revealed that, to maximize profits and save costs, subcontractors of steel reinforcement work of the project had allowed their works to deviate from the building plans approved by BD (the approved building plans) during the construction process. The subcontractors also offered bribes to an employee of the main contractor and resident site supervision staff of the consultancy firm in exchange for their lax supervision of the steel reinforcement works and allowing them to continue with the works without complying with the requirements of the approved building plans.On various occasions, the steel reinforcement works subcontractors concerned had allegedly offered to an employee of the main contractor and resident site supervision staff of the consultancy firm “sweeteners”, including bribe money, gifts as well as payments for lavish entertainment expenses.Registered contractors and registered building professionals have their respective statutory duties, as well as the overall responsibility in relation to works quality, construction and safety supervision. They and their resident site supervision staff should, upon the request of the developer and in accordance with legal requirements, conduct quality inspections of the steel reinforcement works, and complete and sign on designated forms for record-keeping to confirm the compliance of quality standard for proceeding to the next stage of worksThe resident site supervision staff of the consultancy firm concerned had allegedly accepted bribes and falsely represented in the designated forms of the developer that they had conducted quality inspections of the steel reinforcement works, thereby misleading the developer into believing that the works were properly completed.ICAC enquires found that steel reinforcement works at various locations of the construction site showed varying degrees of deviations from the approved building plans. Such deviations were in relation to the number, spacing, thickness and positions of the steel reinforcement bars. The investigation also found that the numbers of steel bars and bar-benders deployed by some of the subcontractors were reduced.As ICAC enquiries are ongoing, further law enforcement actions will not be ruled out.In view of the present case, in addition to stringent enforcement action, the ICAC has further strengthened relevant prevention and education initiatives. The ICAC has been working closely with BD and the industry to carry out corruption prevention measures targeting new private building projects, including corruption prevention reviews and advisory services, to enhance the capabilities of systematic prevention of corruption. Such include enhancing the effectiveness of project supervision by using technology, as well as strengthening integrity requirements of practitioners and punishment mechanisms. In view of the present law enforcement operation, the ICAC’s Corruption Prevention Department will set up a special task force comprising staff possessing professional qualifications, including engineers, surveyors and other professionals of the industry, to review the relevant construction and site supervision procedures and eliminate corruption loopholes. The ICAC will continue to promote and monitor the implementation of those advices.The ICAC is committed to upholding integrity in the construction industry and will provide continuous support and integrity training for construction professionals to deepen their understanding of the anti-corruption law and corruption risks. Through the “Construction Industry Integrity Charter” initiative, the ICAC strives to raise the awareness of corruption prevention and reinforce integrity management, thereby fostering a culture of integrity in the construction industry.The Development Bureau, the BD and the developer concerned rendered full assistance to the ICAC during its investigation into the case.
May 2025Logistics company’s coordinator charged by ICAC gets 31 months’ jail for $9.1m air cargo space orders fraud over conflicting interestA former coordinator of a logistics company, charged by the ICAC, was today (May 22) sentenced to 31 months’ imprisonment at the District Court for deceiving his then employer into placing air cargo space orders worth totalling over $9.1 million with carriers’ agents via two intermediaries associated with him and obtaining personal gain of over $1.2 million in total by concealing his conflicting interest.Wong Wing-ho, 42, former airfreight and business development coordinator of MBS Logistics Limited (MBS), earlier pleaded guilty to two counts of fraud, contrary to section 16A of the Theft Ordinance.In sentencing, Deputy Judge Miss Ivy Chui Yee-mei reprimanded the defendant for orchestrating the scam in less than six months after joining the logistics company, and even serving as the de facto operator of one of the intermediaries concerned. The deputy judge noted that the offences lasted over three years, and the defendant had obtained a substantial amount of personal gain and caused actual monetary losses to his then employer.The court heard that MBS was a local subsidiary of MBS Logistics Group, a worldwide logistics company which provided logistic services to its clients including placing air cargo space orders through different carriers’ agents. At the material time, the defendant was responsible for seeking quotations from carriers’ agents for clients, arranging delivery of clients’ goods to the agents, and submitting invoices of carriers’ agents to MBS for payment approval.The ICAC investigation arose from a corruption complaint. Enquiries revealed that between March 2016 and June 2019, the defendant had recommended MBS to place over 430 air cargo space orders with a carriers’ agent via two intermediaries, namely JTC Development Limited (JTC) and AK Logistics Limited (AKL), and to make payments totalling over $9.1 million to the two intermediaries.Enquiries by the ICAC found that JTC was set up by the defendant and individuals associated with him, while the defendant and his family members had financial interests in the company, which was set up by connected persons of the defendant, while company chop, cheque book and other company documents of JTC were seized by ICAC officers from the defendant’s residence.The investigation also revealed that it was agreed between the defendant and AKL that multilayer arrangements could be made for MBS to place orders with the carriers’ agent through JTC via AKL. In return, the defendant would pay a handling charge of around $50 to $100 per order to AKL.The defendant had made a personal gain of over $1.2 million in total out of the scam, but he had never disclosed to MBS his interests in JTC and his agreement with AKL over the orders.MBS rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutor Jason Lau, assisted by ICAC officer Raymond Lai.The ICAC advises business organisations to formulate clear guidelines and systems of declaraing conflict of interest. Staff members of business organisations are reminded 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 or his associates may constitute a breach of the Prevention of Bribery Ordinance or other criminal law. 21
May 2025ICAC operation ‘War Drum’ uncovers bribery and fraudulent claims over lax supervision of steel reinforcement works and conniving at works deviations at residential construction siteIn a recent law enforcement operation codenamed “War Drum”, the ICAC uncovered corruption and fraudulent claims of inspections at a construction site of a residential project in Kwun Tong. During the operation, ICAC officers arrested 10 men, aged between 29 and 52. They were alleged to have bribed an employee of the main contractor and resident site supervision staff of an engineering consultancy firm, who were responsible for overseeing the construction works of the project, for lax supervision of steel reinforcement works carried out by subcontractors, as well as conniving at works deviated from the building plans.Among the 10 arrestees were an employee of the main contractor and five proprietors, operators or employees of subcontractors. The remaining four arrestees were resident site supervision staff of the consultancy firm. They had allegedly committed offences including bribery, conspiracy to defraud and using false documents.Various premises were searched by ICAC officers in the operation, including the construction site concerned, the offices of the main contractor, subcontractors and engineering consultancy firm, as well as residences of the arrestees. A large number of relevant works documents were seized, such as procurement documents of construction materials, workers’ salary payment records and inspection reports on works quality.The construction site involved in the present case is a private residential project at Anderson Road, Kwun Tong, which is still under construction. The developer has been ordered by the Buildings Department (BD) to suspend construction works.The ICAC investigation arose from a corruption complaint. Enquiries revealed that, to maximize profits and save costs, subcontractors of steel reinforcement work of the project had allowed their works to deviate from the building plans approved by BD (the approved building plans) during the construction process. The subcontractors also offered bribes to an employee of the main contractor and resident site supervision staff of the consultancy firm in exchange for their lax supervision of the steel reinforcement works and allowing them to continue with the works without complying with the requirements of the approved building plans.On various occasions, the steel reinforcement works subcontractors concerned had allegedly offered to an employee of the main contractor and resident site supervision staff of the consultancy firm “sweeteners”, including bribe money, gifts as well as payments for lavish entertainment expenses.Registered contractors and registered building professionals have their respective statutory duties, as well as the overall responsibility in relation to works quality, construction and safety supervision. They and their resident site supervision staff should, upon the request of the developer and in accordance with legal requirements, conduct quality inspections of the steel reinforcement works, and complete and sign on designated forms for record-keeping to confirm the compliance of quality standard for proceeding to the next stage of worksThe resident site supervision staff of the consultancy firm concerned had allegedly accepted bribes and falsely represented in the designated forms of the developer that they had conducted quality inspections of the steel reinforcement works, thereby misleading the developer into believing that the works were properly completed.ICAC enquires found that steel reinforcement works at various locations of the construction site showed varying degrees of deviations from the approved building plans. Such deviations were in relation to the number, spacing, thickness and positions of the steel reinforcement bars. The investigation also found that the numbers of steel bars and bar-benders deployed by some of the subcontractors were reduced.As ICAC enquiries are ongoing, further law enforcement actions will not be ruled out.In view of the present case, in addition to stringent enforcement action, the ICAC has further strengthened relevant prevention and education initiatives. The ICAC has been working closely with BD and the industry to carry out corruption prevention measures targeting new private building projects, including corruption prevention reviews and advisory services, to enhance the capabilities of systematic prevention of corruption. Such include enhancing the effectiveness of project supervision by using technology, as well as strengthening integrity requirements of practitioners and punishment mechanisms. In view of the present law enforcement operation, the ICAC’s Corruption Prevention Department will set up a special task force comprising staff possessing professional qualifications, including engineers, surveyors and other professionals of the industry, to review the relevant construction and site supervision procedures and eliminate corruption loopholes. The ICAC will continue to promote and monitor the implementation of those advices.The ICAC is committed to upholding integrity in the construction industry and will provide continuous support and integrity training for construction professionals to deepen their understanding of the anti-corruption law and corruption risks. Through the “Construction Industry Integrity Charter” initiative, the ICAC strives to raise the awareness of corruption prevention and reinforce integrity management, thereby fostering a culture of integrity in the construction industry.The Development Bureau, the BD and the developer concerned rendered full assistance to the ICAC during its investigation into the case.