Integrity Focus
Menu
Recent ICAC Cases Anti-Corruption Laws in Hong Kong Corruption Myths Cross-Boundary Business Operations Conflict of Interest
What is conflict of interest? Examples of conflict of interest Problems arising from conflict of interest How to handle conflict of interest? How well are we managing conflict of interest?
Ethical Decision MakingRecent ICAC Cases
13
Oct 2023Ex-head chef of Chinese restaurant charged by ICAC jailed for 12 months over bribery and perversionA then head chef of a Chinese restaurant, charged by the ICAC, was today (October 13) sentenced to 12 months’ imprisonment at the West Kowloon Magistrates’ Courts upon conviction of soliciting and accepting bribes from a subordinate for assisting the subordinate and his wife to maintain employment with the restaurant and get promoted, and perverting public justice by inciting the subordinate to make false statements to the Commission in respect of the bribery investigation.Zhong Sheng, 41, former head chef of Fu Rong Food & Beverage Limited (Fu Rong), was found guilty of seven charges — three of agent soliciting an advantage and two of agent accepting an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance; and two of doing an act tending and intended to pervert the course of public justice, contrary to the Common Law.In sentencing, Magistrate Mr Jason Wan Siu-ming said the offences committed by the defendant were serious in nature, and that the solicitation over the employment of a pregnant subordinate was particularly evil, warranting a custodial sentence.At the material time, the couple concerned were employed by Fu Rong. As the head chef of Fu Rong, the defendant was responsible for overseeing its kitchen operation and making recommendation to the company on staff posting and promotion. The couple were his subordinates.The court heard that in about October 2019, the defendant solicited from the husband a bribe between $20,000 and $40,000 for maintaining the employment of the wife with Fu Rong upon knowing she was pregnant. He finally accepted a bribe of $10,000 from the husband for the same purpose.In May 2021, the defendant further solicited from the husband on two occasions a bribe of $1,000 per month and a one-off bribe payment of $2,000 for assisting the husband to transfer his post with a pay rise of HK$2,000 and to obtain a promotion at Fu Rong. In fear the defendant would cause him hardship at work if he did not accede to the request, the husband paid $2,000 to the defendant.After the defendant was arrested by the ICAC in March 2022, the defendant, with intent to pervert the course of public justice, twice incited the husband to give a false statement to the ICAC by falsely representing that part of the payments concerned was a loan and that the defendant had already made the repayment.Fu Rong prohibited its employees to use their positions to solicit or accept any advantages. It had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutor Joey Lin, assisted by ICAC officer William Leung.An ICAC spokesperson urges members of public not to tolerate corruption. Should they be asked to pay bribes in exchange for their employment or favourable treatment, they should report to the ICAC immediately. ICAC’s report corruption hotline: 25 266 366. 13
Oct 2023Then electrician charged by ICAC with bribery and blackmail over workers’ employment at Community Isolation Facility construction siteA then electrician employed by a subcontractor of the construction site of a Community Isolation Facility in Yuen Long during the COVID-19 pandemic was charged by the ICAC yesterday (October 12) with soliciting and accepting bribes from five fellow workers over their employment, and blackmailing one of the workers who declined his solicitation.Fung Sui-tuen, 37, former electrician of Perfect City Engineering Limited (Perfect City), faces six charges – two of agent accepting an advantage and three of agent soliciting an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance; and one of blackmail, contrary to section 23(1) of the Theft Ordinance.The defendant was released on ICAC bail, pending his appearance in the Fanling Magistrates’ Courts next Monday (October 16) for plea.When the offences took place between March and April 2022, the defendant was employed by Perfect City as an electrician to conduct urgent fire service installation works at the construction site of a Community Isolation Facility in Yuen Long.At the material time, the defendant referred another worker to work on night shifts at the site, while four other workers were later directly or indirectly referred by the aforesaid worker to join the team. The defendant and the aforesaid five workers were each paid a wage of $2,700 per night-shift.It is alleged that the defendant accepted bribes totalling $600 from two of the workers for assisting them to be employed by Perfect City. He also allegedly solicited from the remaining three workers bribes totalling at least $800 for the same purpose. ICAC enquiries revealed that his solicitations were eventually declined.Meanwhile, the defendant also allegedly made an unwarranted demand of $400 with menaces from one of the aforesaid workers who declined his solicitation.Perfect City, which has rendered full assistance to the ICAC during its investigation, does not allow its workers to solicit or accept any advantage from any person for referring them to be employed by the company.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. 12
Oct 2023Two former team leaders of park construction project charged by ICAC admits bribery over worker employmentTwo then team leaders of a sub-contractor of a park construction project, charged by the ICAC, today (October 12) admitted at the Kowloon City Magistrates’ Courts that they had accepted bribes totalling over $64,000 from four workers for securing the latter’s employment with the sub-contractor.Kwong Chi-kit, 39; and Chan Wai-kwok, 35, both former team leaders of HK Huangshangyou Steel Industrial Limited (HSY), pleaded guilty to two joint charges of conspiracy for agents to accept an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance. Chan alone further pleaded guilty to two other similar offences.Acting Principal Magistrate Miss Veronica Heung Shuk-han adjourned the case to October 26 for sentence, pending Kwong and Chan’s background reports. The defendants were remanded in the custody of the Correctional Services Department.At the material time, HSY was a steel and metal works sub-contractor of a park construction project in Kai Tak. Kwong and Chan joined HSY in March 2021. Kwong was tasked to source workers for HSY to work for the project under the supervision of Chan at a daily wage of $1,400.The offences took place between April and August 2021. Kwong and Chan conspired together to accept bribes totalling over $31,000 from two workers, while Chan also accepted bribes totalling over $32,000 from two other workers. The duo accepted the aforesaid bribes for assisting the four workers to secure their employment from or maintain their employment with HSY.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the duo conspired to solicit a daily rebate ranging from $300 to $500 from the four workers, and accepted bribes ranging from $10,000 to over $21,000 from each worker.HSY had rendered full assistance to the ICAC during its investigation.The prosecution was today represented by ICAC officer Derek So.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. 11
Oct 2023Ex-HKUST supplier charged by ICAC jailed for 28 months over concealing conflict of interest in $3.2m procurementThe ICAC had earlier charged two operators of two former suppliers of the Hong Kong University of Science and Technology (HKUST) for fraud by conspiring with a then Adjunct Associate Professor of the university to conceal the latter’s interest in the two suppliers concerning various procurements that involved payments amounted to several million dollars over a span of more than seven years. One of the duo was sentenced to 28 months’ imprisonment after pleading guilty to his offences at the District Court today (October 11).Yeung Siu-on, 41, then sole director and shareholder of PIT Limited (PITL), pleaded guilty to 11 charges – one of conspiracy to defraud, contrary to Common Law; and 10 of fraud, contrary to section 16A(1) of the Theft Ordinance. Three similar charges against him were left on file at the District Court.In sentencing, Deputy District Judge Mr Cheang Kei-hong said the defendant failed to distinguish right from wrong and obtained the procurement orders by making false declarations. He took an overall starting point of 48 months’ imprisonment and reduced the jail term to 28 months having considered the defendant’s guilty plea and other mitigating factors.At the material time, PITL was a supplier providing environmental testing services and Yeung Siu-on became its sole director and shareholder in late 2011. When medical product supplier Chun Fo (Asia) Pharmaceutical Co., Limited (CFPL) incorporated in mid-2012, Yeung Siu-on was its sole director and shareholder.Between September 2011 and February 2019, Yeung Lam-lung, then Adjunct Associate Professor of the Department of Chemistry of HKUST, conducted tendering and procurement exercises for the university and its subsidiary to purchase various laboratory equipment and testing services from PITL and CFPL.In accordance with the regulations of HKUST, Yeung Lam-lung was required to declare his conflict of interest with any suppliers before engaging them. Suppliers were also required to declare whether any HKUST staff had any interest in them.The ICAC investigation arose from a corruption complaint. Enquiries revealed that although Yeung Lam-lung had direct or indirect financial interests in PITL and CFPL, Yeung Siu-on conspired with the latter to defraud HKUST by concealing the latter’s interest in the two suppliers and induced it to engage CFPL in one of the above tendering and procurement exercises.The court heard that Yeung Siu-on, together with Yeung Lam-lung, induced HKUST or its subsidiary to engage PITL in 10 other tendering and procurement exercises by the same fraudulent means. The 11 tendering and procurement exercises involved payments totalling over $3.2 million.As Yeung Lam-lung had already left Hong Kong, a warrant for the arrest of him was issued by a Magistrate in early October 2022 upon the application made by the ICAC.Co-defendant Au Yeung Siu-fung, who replaced Yeung Siu-on as the sole director and shareholder of CFPL in the material time, earlier pleaded not guilty to two counts of conspiracy to defraud and one count of fraud. His trial is scheduled for 21 February, 2024.HKUST had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutor Chan Sze -yan, assisted by ICAC officer Michael Lim.The ICAC reminds members of public and private organisations to 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 may contravene the criminal law, such as the Prevention of Bribery Ordinance if offering or accepting of bribes is involved. 10
Oct 2023Ten months’ jail for property buyer charged by ICAC over $7.8m mortgage loan fraudA property buyer, charged by the ICAC, was today (October 10) sentenced to 10 months’ imprisonment at the District Court for deceiving a bank and the HKMC Insurance Limited (HKMCI) into granting a mortgage loan with a loan-to-value (LTV) ratio of 80 per cent, amounting to about $7.8 million, by making false representations that a flat was purchased for self-use. The offences were revealed in the course of a corruption investigation by the ICAC.Hui Chi-fung, 39, Senior Station Officer of the Fire Services Department, was earlier convicted of two counts of fraud, contrary to section 16A of the Theft Ordinance.In sentencing, Deputy Judge Mr Kenneth Chan Ping-chau remarked that the LTV ratio of 80 per cent set for banks in granting mortgage loans was a property cooling measure implemented by the Government. The defendant’s act had undermined the mechanism and harmed the public interest. The court must mete out a deterrent custodial sentence in order to convey the right message to the public.The Deputy Judge took a starting point of 12 months’ imprisonment and reduced the jail term by two months having considered various mitigating factors.The Deputy Judge had also approved the prosecution’s application for a confiscation order and scheduled the relevant hearing for November 27.According to the guidelines issued by the Hong Kong Monetary Authority, banks are required to comply with the LTV ratio requirement for property mortgage lending. Banks participating in the mortgage insurance programme of the HKMCI (the Programme) can provide a mortgage loan with an LTV ratio of up to 80 per cent for a self-used private residential property valued between $6 million and $10 million. Industrial and Commercial Bank of China (Asia) Limited (ICBC Asia) is a participating bank.In April 2020, the defendant purchased a residential property in San Po Kong at $9.65 million and applied for a mortgage loan with an LTV ratio of 80 per cent with ICBC Asia under the Programme.The court heard that between April and July 2020, the defendant made false representations to ICBC Asia and the HKMCI that the above residential property would be occupied for his self-use after completion of the purchase. The HKMCI eventually approved the application for mortgage loan insurance cover in respect of the mortgage loan.On July 6, 2020, ICBC Asia approved the mortgage loan application and granted the defendant a loan of about $7.8 million. The defendant completed the sale and purchase of the property on the same day.The ICAC investigation arose from a corruption complaint. Enquiries revealed that on the same day when the mortgage loan application was approved by ICBC Asia, the defendant entrusted an estate agency to lease out the property, which was successfully leased out at a monthly rental of over $21,000 two days later. The defendant and his family in fact had never resided in the property.Had ICBC Asia and the HKMCI known that the property was not for the defendant’s self-occupancy, they would not have approved the defendant’s applications for the mortgage loan and the mortgage loan insurance cover respectively.ICBC Asia and the HKMCI had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Susanna Ku, assisted by ICAC officer Christine Chiu.
Oct 2023Ex-head chef of Chinese restaurant charged by ICAC jailed for 12 months over bribery and perversionA then head chef of a Chinese restaurant, charged by the ICAC, was today (October 13) sentenced to 12 months’ imprisonment at the West Kowloon Magistrates’ Courts upon conviction of soliciting and accepting bribes from a subordinate for assisting the subordinate and his wife to maintain employment with the restaurant and get promoted, and perverting public justice by inciting the subordinate to make false statements to the Commission in respect of the bribery investigation.Zhong Sheng, 41, former head chef of Fu Rong Food & Beverage Limited (Fu Rong), was found guilty of seven charges — three of agent soliciting an advantage and two of agent accepting an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance; and two of doing an act tending and intended to pervert the course of public justice, contrary to the Common Law.In sentencing, Magistrate Mr Jason Wan Siu-ming said the offences committed by the defendant were serious in nature, and that the solicitation over the employment of a pregnant subordinate was particularly evil, warranting a custodial sentence.At the material time, the couple concerned were employed by Fu Rong. As the head chef of Fu Rong, the defendant was responsible for overseeing its kitchen operation and making recommendation to the company on staff posting and promotion. The couple were his subordinates.The court heard that in about October 2019, the defendant solicited from the husband a bribe between $20,000 and $40,000 for maintaining the employment of the wife with Fu Rong upon knowing she was pregnant. He finally accepted a bribe of $10,000 from the husband for the same purpose.In May 2021, the defendant further solicited from the husband on two occasions a bribe of $1,000 per month and a one-off bribe payment of $2,000 for assisting the husband to transfer his post with a pay rise of HK$2,000 and to obtain a promotion at Fu Rong. In fear the defendant would cause him hardship at work if he did not accede to the request, the husband paid $2,000 to the defendant.After the defendant was arrested by the ICAC in March 2022, the defendant, with intent to pervert the course of public justice, twice incited the husband to give a false statement to the ICAC by falsely representing that part of the payments concerned was a loan and that the defendant had already made the repayment.Fu Rong prohibited its employees to use their positions to solicit or accept any advantages. It had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutor Joey Lin, assisted by ICAC officer William Leung.An ICAC spokesperson urges members of public not to tolerate corruption. Should they be asked to pay bribes in exchange for their employment or favourable treatment, they should report to the ICAC immediately. ICAC’s report corruption hotline: 25 266 366. 13
Oct 2023Then electrician charged by ICAC with bribery and blackmail over workers’ employment at Community Isolation Facility construction siteA then electrician employed by a subcontractor of the construction site of a Community Isolation Facility in Yuen Long during the COVID-19 pandemic was charged by the ICAC yesterday (October 12) with soliciting and accepting bribes from five fellow workers over their employment, and blackmailing one of the workers who declined his solicitation.Fung Sui-tuen, 37, former electrician of Perfect City Engineering Limited (Perfect City), faces six charges – two of agent accepting an advantage and three of agent soliciting an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance; and one of blackmail, contrary to section 23(1) of the Theft Ordinance.The defendant was released on ICAC bail, pending his appearance in the Fanling Magistrates’ Courts next Monday (October 16) for plea.When the offences took place between March and April 2022, the defendant was employed by Perfect City as an electrician to conduct urgent fire service installation works at the construction site of a Community Isolation Facility in Yuen Long.At the material time, the defendant referred another worker to work on night shifts at the site, while four other workers were later directly or indirectly referred by the aforesaid worker to join the team. The defendant and the aforesaid five workers were each paid a wage of $2,700 per night-shift.It is alleged that the defendant accepted bribes totalling $600 from two of the workers for assisting them to be employed by Perfect City. He also allegedly solicited from the remaining three workers bribes totalling at least $800 for the same purpose. ICAC enquiries revealed that his solicitations were eventually declined.Meanwhile, the defendant also allegedly made an unwarranted demand of $400 with menaces from one of the aforesaid workers who declined his solicitation.Perfect City, which has rendered full assistance to the ICAC during its investigation, does not allow its workers to solicit or accept any advantage from any person for referring them to be employed by the company.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. 12
Oct 2023Two former team leaders of park construction project charged by ICAC admits bribery over worker employmentTwo then team leaders of a sub-contractor of a park construction project, charged by the ICAC, today (October 12) admitted at the Kowloon City Magistrates’ Courts that they had accepted bribes totalling over $64,000 from four workers for securing the latter’s employment with the sub-contractor.Kwong Chi-kit, 39; and Chan Wai-kwok, 35, both former team leaders of HK Huangshangyou Steel Industrial Limited (HSY), pleaded guilty to two joint charges of conspiracy for agents to accept an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance. Chan alone further pleaded guilty to two other similar offences.Acting Principal Magistrate Miss Veronica Heung Shuk-han adjourned the case to October 26 for sentence, pending Kwong and Chan’s background reports. The defendants were remanded in the custody of the Correctional Services Department.At the material time, HSY was a steel and metal works sub-contractor of a park construction project in Kai Tak. Kwong and Chan joined HSY in March 2021. Kwong was tasked to source workers for HSY to work for the project under the supervision of Chan at a daily wage of $1,400.The offences took place between April and August 2021. Kwong and Chan conspired together to accept bribes totalling over $31,000 from two workers, while Chan also accepted bribes totalling over $32,000 from two other workers. The duo accepted the aforesaid bribes for assisting the four workers to secure their employment from or maintain their employment with HSY.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the duo conspired to solicit a daily rebate ranging from $300 to $500 from the four workers, and accepted bribes ranging from $10,000 to over $21,000 from each worker.HSY had rendered full assistance to the ICAC during its investigation.The prosecution was today represented by ICAC officer Derek So.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. 11
Oct 2023Ex-HKUST supplier charged by ICAC jailed for 28 months over concealing conflict of interest in $3.2m procurementThe ICAC had earlier charged two operators of two former suppliers of the Hong Kong University of Science and Technology (HKUST) for fraud by conspiring with a then Adjunct Associate Professor of the university to conceal the latter’s interest in the two suppliers concerning various procurements that involved payments amounted to several million dollars over a span of more than seven years. One of the duo was sentenced to 28 months’ imprisonment after pleading guilty to his offences at the District Court today (October 11).Yeung Siu-on, 41, then sole director and shareholder of PIT Limited (PITL), pleaded guilty to 11 charges – one of conspiracy to defraud, contrary to Common Law; and 10 of fraud, contrary to section 16A(1) of the Theft Ordinance. Three similar charges against him were left on file at the District Court.In sentencing, Deputy District Judge Mr Cheang Kei-hong said the defendant failed to distinguish right from wrong and obtained the procurement orders by making false declarations. He took an overall starting point of 48 months’ imprisonment and reduced the jail term to 28 months having considered the defendant’s guilty plea and other mitigating factors.At the material time, PITL was a supplier providing environmental testing services and Yeung Siu-on became its sole director and shareholder in late 2011. When medical product supplier Chun Fo (Asia) Pharmaceutical Co., Limited (CFPL) incorporated in mid-2012, Yeung Siu-on was its sole director and shareholder.Between September 2011 and February 2019, Yeung Lam-lung, then Adjunct Associate Professor of the Department of Chemistry of HKUST, conducted tendering and procurement exercises for the university and its subsidiary to purchase various laboratory equipment and testing services from PITL and CFPL.In accordance with the regulations of HKUST, Yeung Lam-lung was required to declare his conflict of interest with any suppliers before engaging them. Suppliers were also required to declare whether any HKUST staff had any interest in them.The ICAC investigation arose from a corruption complaint. Enquiries revealed that although Yeung Lam-lung had direct or indirect financial interests in PITL and CFPL, Yeung Siu-on conspired with the latter to defraud HKUST by concealing the latter’s interest in the two suppliers and induced it to engage CFPL in one of the above tendering and procurement exercises.The court heard that Yeung Siu-on, together with Yeung Lam-lung, induced HKUST or its subsidiary to engage PITL in 10 other tendering and procurement exercises by the same fraudulent means. The 11 tendering and procurement exercises involved payments totalling over $3.2 million.As Yeung Lam-lung had already left Hong Kong, a warrant for the arrest of him was issued by a Magistrate in early October 2022 upon the application made by the ICAC.Co-defendant Au Yeung Siu-fung, who replaced Yeung Siu-on as the sole director and shareholder of CFPL in the material time, earlier pleaded not guilty to two counts of conspiracy to defraud and one count of fraud. His trial is scheduled for 21 February, 2024.HKUST had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutor Chan Sze -yan, assisted by ICAC officer Michael Lim.The ICAC reminds members of public and private organisations to 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 may contravene the criminal law, such as the Prevention of Bribery Ordinance if offering or accepting of bribes is involved. 10
Oct 2023Ten months’ jail for property buyer charged by ICAC over $7.8m mortgage loan fraudA property buyer, charged by the ICAC, was today (October 10) sentenced to 10 months’ imprisonment at the District Court for deceiving a bank and the HKMC Insurance Limited (HKMCI) into granting a mortgage loan with a loan-to-value (LTV) ratio of 80 per cent, amounting to about $7.8 million, by making false representations that a flat was purchased for self-use. The offences were revealed in the course of a corruption investigation by the ICAC.Hui Chi-fung, 39, Senior Station Officer of the Fire Services Department, was earlier convicted of two counts of fraud, contrary to section 16A of the Theft Ordinance.In sentencing, Deputy Judge Mr Kenneth Chan Ping-chau remarked that the LTV ratio of 80 per cent set for banks in granting mortgage loans was a property cooling measure implemented by the Government. The defendant’s act had undermined the mechanism and harmed the public interest. The court must mete out a deterrent custodial sentence in order to convey the right message to the public.The Deputy Judge took a starting point of 12 months’ imprisonment and reduced the jail term by two months having considered various mitigating factors.The Deputy Judge had also approved the prosecution’s application for a confiscation order and scheduled the relevant hearing for November 27.According to the guidelines issued by the Hong Kong Monetary Authority, banks are required to comply with the LTV ratio requirement for property mortgage lending. Banks participating in the mortgage insurance programme of the HKMCI (the Programme) can provide a mortgage loan with an LTV ratio of up to 80 per cent for a self-used private residential property valued between $6 million and $10 million. Industrial and Commercial Bank of China (Asia) Limited (ICBC Asia) is a participating bank.In April 2020, the defendant purchased a residential property in San Po Kong at $9.65 million and applied for a mortgage loan with an LTV ratio of 80 per cent with ICBC Asia under the Programme.The court heard that between April and July 2020, the defendant made false representations to ICBC Asia and the HKMCI that the above residential property would be occupied for his self-use after completion of the purchase. The HKMCI eventually approved the application for mortgage loan insurance cover in respect of the mortgage loan.On July 6, 2020, ICBC Asia approved the mortgage loan application and granted the defendant a loan of about $7.8 million. The defendant completed the sale and purchase of the property on the same day.The ICAC investigation arose from a corruption complaint. Enquiries revealed that on the same day when the mortgage loan application was approved by ICBC Asia, the defendant entrusted an estate agency to lease out the property, which was successfully leased out at a monthly rental of over $21,000 two days later. The defendant and his family in fact had never resided in the property.Had ICBC Asia and the HKMCI known that the property was not for the defendant’s self-occupancy, they would not have approved the defendant’s applications for the mortgage loan and the mortgage loan insurance cover respectively.ICBC Asia and the HKMCI had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Susanna Ku, assisted by ICAC officer Christine Chiu.