Recent ICAC Cases


04
Sep 2024
Private cello tutor charged by ICAC with fraud over purchase of celloA private cello tutor was today (September 4) charged by the ICAC with fraud for arranging a student’s parent to purchase a cello at an instrument company without disclosing that he would benefit from the arrangement. It was alleged that the defendant had concealed from the parent the actual price of the instrument and pocketed the price difference totalling over $6,000.Ho Ka-yeung, 30, private cello tutor, faces one count of fraud, contrary to section 16A of the Theft Ordinance. He was released on ICAC bail, pending his appearance at West Kowloon Magistrates’ Courts on Friday (September 6) for plea.The ICAC investigation arose from a corruption complaint. Enquiries revealed that between July and August in 2023, the defendant suggested to a student’s parent to purchase a new cello for her son for his music examination. He told the parent that a discount could be obtained from Chairman Instruments Trading Limited (Chairman Instruments).The defendant later accompanied the parent to Chairman Instruments to purchase a cello and paid for it on behalf of the parent. The charge alleges that the defendant falsely represented to the parent that the price of the cello was $24,300 after a discount from Chairman Instruments. ICAC inquiries revealed that Chairman Instruments had sold the cello to the defendant at $18,000 only. However, he never disclosed to the parent the amount he paid to Chairman Instruments, nor did he reveal that he had pocketed the price difference in reselling the instrument to the parent.
03
Sep 2024
Deputy general manager of construction company charged by ICAC for taking $2m bribe for securing project works for subcontractorThe ICAC today (September 3) charged a deputy general manager of a construction company with allegedly accepting a bribe of $2 million from an operator of a works subcontractor for assisting the latter in securing a slope and soil nail works subcontract under a site formation project.Xu Wenju, 40, deputy general manager of China Railway 15th Bureau Group Company Limited (Hong Kong Representative Office) (CR15); and Ng Koon-shing, 60, operator of Hanki Contractors (Hong Kong) & Associates Limited (Hanki), jointly face one count of conspiracy for an agent to accept an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance. The duo was released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts on Thursday (September 5) for mention. The prosecution will apply for transferring the case to the District Court for plea.At the material time, Xu was the deputy general manager of CR15 responsible for overseeing the company’s construction projects in Hong Kong, while Ng was the operator of works subcontractor Hanki.Since May 2022, CR15 collaborated with another construction company to jointly manage a site formation and infrastructure works project of the Civil Engineering and Development Department (CEDD) in Tseung Kwan O. Xu, representing CR15, joined the management committee of the project to approve tenders submitted by subcontractors and handle relevant supervision matters.The charge alleges that between July and November 2022, Xu and Ng conspired together for Xu to agree to accept from Ng a bribe of $2 million for assisting Hanki to secure the slope and soil nail works subcontract under the aforesaid project (the contract).The ICAC investigation arose from a corruption complaint. Enquiries revealed that Xu and Ng reached the relevant bribery agreement during the aforesaid period. It was also revealed that Hanki would not have been invited to bid for the works had it not been recommended to the management committee of the project by Xu. After Hanki’s submission of its tender for the contract, Xu had provided Hanki with his advice and assistance during the tendering exercise. However, since Hanki was not the lowest bidder, it was not awarded the contract.CR15 prohibited its staff from soliciting or accepting advantages in relation to the company’s business.The CEDD and CR15 rendered full assistance to the ICAC during its investigation into the case.
02
Sep 2024
Woman charged by ICAC for allegedly offering RMB 2000 bribe to bank staff for reactivating accountThe ICAC today (September 2) charged a woman for allegedly offering a bribe of RMB 2,000 to a bank employee for assistance in reactivating her company’s bank account.LI Rong, 38, director and shareholder of Zhong Sheng Technology (Hongkong) Co. Limited (Zhong Sheng Technology), faces one count of offering an advantage to an agent, contrary to section 9(2)(a) of the Prevention of Bribery Ordinance. She was released on ICAC bail, pending her appearance at the West Kowloon Magistrates’ Courts on Wednesday (September 4) for plea.The investigation arose from a corruption complaint. Inquiries revealed that in 2013, the defendant opened a Business Integrated Account for Zhong Sheng Technology which she owned at the Hongkong and Shanghai Banking Corporation Limited (HSBC). As there were no transactions in the account for 10 consecutive months since 2015, the account was turned “dormant” in HSBC’s system.In July 2019, the defendant, through phone enquiry, learnt that the bank account was in “dormant” status. She then visited the HSBC Business Centre in Tsim Sha Tsui to reactivate the account. Since the defendant could not provide the required company documents, the procedures could not be completed on the same day. The defendant left the bank after exchanging contact information with the bank staff, and later left Hong Kong.It is alleged that on August 5, 2019, the defendant, through a communication application, offered RMB 2,000 to the aforesaid bank staff for assisting in the procedures to reactivate the account of Zhong Sheng Technology. The bank staff did not accept the offer and immediately reported the matter to her supervisor.The defendant was arrested in August 2024 when she came to Hong Kong again, and was charged by the ICAC this morning.HSBC rendered full assistance to the ICAC during its investigation into the case.The ICAC reminds members of the public not to bribe bank staff for services. Should bank employees come across any suspicion of corruption, they should report the matter to the ICAC immediately. The ICAC collaborates closely with the banking industry and would take swift enforcement to uphold the public and stakeholders’ trust in Hong Kong’s banking system. The Community Relations Department has also produced a new educational video on bank account opening, which will be broadcast on different media platforms to remind members of the public not to breach the law.
28
Aug 2024
Ex-manager of green wall installation company charged by ICAC guilty of business diversion fraudA former marketing manager of a green wall installation company, charged by the ICAC for diverting the company’s business to another company to which she was related through fraudulent means, was today (August 28) convicted of two counts of fraud at West Kowloon Magistrates’ Courts.Lee Man-ling, 38, former marketing manager of Midori Creation International Limited (Midori), was found guilty of two counts of fraud, contrary to section 16A of the Theft Ordinance.The defendant was granted bail by Magistrate Mr Pang Leung-ting, and the case was adjourned to September 20 for sentence, pending a community service order report.The court heard that at the material time, the defendant was responsible for sourcing business for Midori, which specialised in green wall installation and maintenance services. She tendered her resignation in early October 2018 and left the company in early November the same year.In July 2018, the defendant provided a quotation of green wall installation to a client of Midori upon the latter’s request. In late October of the same year, the defendant falsely represented to the client that the company was going to rename to Plant Plant Holding Company Limited (Plant Plant) to cope with the business development. The defendant later submitted two quotations to that client under the name of Plant Plant, facilitating Plant Plant to obtain the service contract.In addition, during the business discussion process with another Midori’s client in October 2018, the defendant misled the client into engaging Plant Plant to provide the relevant service.The ICAC investigation arose from a corruption complaint about the relevant service contracts. Inquiries revealed that Midori had never changed its name, and Plant Plant and Midori were two unrelated companies. It was also revealed that the defendant would join Plant Plant as marketing manager after leaving Midori. As the two aforementioned clients was misled by the defendant’s representation, they engaged Plant Plant to provide services and paid the company over $110,000 and about $50,000 respectively. Had the clients known that Midori and Plant Plant were unrelated, they would not have accepted Plant Plant’s quotations or engaged the company to provide services.Midori had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Annie Lai, assisted by ICAC officer Cody Chung.
26
Aug 2024
Joint Press release: ICAC and Competition Commission conduct second joint operation against corruption and bid-rigging over building maintenanceThe ICAC and the Competition Commission conducted a joint operation code-named “Shotgun” for two consecutive days on August 21 and 22, following the two agencies’ first collaborated action in mid-April against a newly-rising syndicate engaging in corruption and bid-rigging. After a four-month in-depth investigation and detailed analysis of evidence collected, the two agencies discovered that the syndicate might have been involved in other suspected corruption and bid-rigging activities and therefore took further enforcement actions.The ICAC further arrested five persons and interviewed 22 persons during this operation, including project contractors, project consultants, middlemen, members of property management companies, and members of Incorporated Owners (IO).In the joint operation, search warrants were executed by the ICAC and the Competition Commission to conduct searches at around 20 premises, including the offices of various project contractors, consultancies, as well as residences of the individuals concerned. Various exhibits were seized. The Competition Commission has also exercised its compulsory powers in the operation, requesting relevant companies and individuals to produce documents and information, and to attend before the Competition Commission to provide information relating to the case.The companies and individuals concerned were alleged to have solicited and accepted bribes and engaged in anti-competitive activities in order to manipulate the tendering exercises of building maintenance projects. They were also alleged to have exaggerated contract sums and assisted associated contractors in securing contracts of the projects.The investigation of ICAC mainly targeted renovation projects of two residential estates in Hong Kong Island, whereby corruption was suspected. The value of the two renovation project contracts was worth about $140 million in total. It is alleged that the backbone members of the syndicate, through a middle man, might have offered advantages to the IO members in order to ensure that the associated project contractors controlled by the syndicate would be awarded the renovation contracts of the two residential estates respectively, thus contravening section 9 of the Prevention of Bribery Ordinance (POBO). The renovation projects concerned have yet to be executed.Meanwhile, the investigation conducted by the Competition Commission concerned renovation projects of 38 residential estates / buildings, and industrial buildings in Hong Kong Island, Kowloon and the New Territories. The value of the relevant renovation contracts totalled over $1 billion, with individual contracts worth as much as $260 million. Some of the renovation contracts concerned have yet to be awarded and some had been overturned, while works of individual projects had commenced prior to the commencement of the Competition Commission’s investigations.During the tendering of renovation projects for the 38 aforementioned buildings, the companies and individuals concerned had allegedly manipulated the tender results by exchanging and coordinating bidding prices, either directly or through intermediaries, while some contractors had submitted cover bids. Such conduct would amount to bid-rigging, price-fixing and exchange of competitively sensitive information, contravening the First Conduct Rule of the Competition Ordinance.As investigation is ongoing, no further comment on the case will be made by the ICAC and the Competition Commission at this stage.The series of joint operations conducted by the ICAC and the Competition Commission demonstrate the determination of the two agencies in safeguarding a clean and level-playing field for the building maintenance industry, and that no corruption and anti-competitive conduct will be tolerated. The two agencies will continue to maintain close collaboration with other law enforcement agencies and related authorities to crack down on illegal activities and to safeguard the rights of property owners.The ICAC calls on property owners and members of the public that, should they suspect corruption is involved in building maintenance, they should make enquiries or report to the ICAC without delay. The ICAC’s report corruption hotline: 25 266 366. The Competition Commission calls on anyone who can provide information on the matter or the relevant practices to contact the Competition Commission as soon as possible by telephone on 3462 2118 or by e-mail at complaints@compcomm.hk. Those who consider that they may have engaged or been involved in cartel conduct should approach the Commission as soon as possible for leniency or co-operation (Leniency Hotline: 3996 8010; e-mail: leniency@compcomm.hk).The ICAC has all along been taking stringent enforcement action against corruption in the building management sector. The ICAC also actively supports flat owners and building management bodies (BMBs) in enhancing their anti-corruption capability through corruption prevention and education. The ICAC will continue to proactively approach BMBs and adopt an early intervention strategy, as well as to encourage flat owners to stay vigilant against corruption in renovation works through active participation in building management. To address the corruption risks in building maintenance projects, the ICAC has compiled and distributed the “Corruption Prevention 101 – Building Maintenance Tips” leaflet to provide corruption prevention suggestions and relevant information for owners. Members of the public can download the leaflet from the ICAC Corruption Prevention Advisory Service webpage (cpas.icac.hk). In collaboration with different government departments, regulators, professional bodies and trade associations, the ICAC will continue to organise integrity training to enhance practitioners’ professional conduct and resistance to bribery temptations. The ICAC has also produced a wide range of practical education resources which are available in the Integrity and Quality Building Management website (bm.icac.hk). Citizens are also welcome to call the Integrity Building Management Enquiry Hotline at 2929 4555 for ICAC services.Apart from enforcement actions, the Competition Commission has been actively launching publicity and educational initiatives to raise public awareness of bid-rigging and other anti-competitive conduct, and to assist procurers in strengthening their preventive efforts. In addition to rolling out a series of educational resources on its website, the Commission also spares no effort in engaging with the community. Over the past year, the Competition Commission has attended 19 briefings on building maintenance and management, reaching out to property owners and property managers in various districts, as well as relevant government departments and public bodies, to promote the message of combatting bid-rigging. Separately, the Competition Commission has also published a set of model “Non-collusion Clauses” for procurers to incorporate into their invitation to bid documents and contracts, with a view to reducing their exposure to anti-competitive conduct during procurement exercises. In essence, the “Non-collusion Clauses” serve to warn bidders of the prohibition against, and consequences of, entering into anti-competitive arrangements, as well as to provide a clear and straightforward contractual remedy for procurers in the event that these clauses have been breached. Both Chinese and English versions of the model clauses are available for downloading at www.compcomm.hk.

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