Recent ICAC Cases


15
Aug 2024
FEHD Foreman sentenced for breaching POBO by accepting unauthorised loan of $60,000 from subordinateA Foreman of the Food and Environmental Hygiene Department (FEHD), charged by the ICAC, was today (August 15) sentenced at the Eastern Magistrates’ Courts to four months’ imprisonment, suspended for three years, for accepting an unauthorised loan of $60,000 from a subordinate in breach of the anti-bribery law.Lai Tak-sum, 56, Foreman of the FEHD, pleaded guilty at the Eastern Magistrates’ Courts to one count of prescribed officer accepting an advantage on July 25, contrary to section 3 of the Prevention of Bribery Ordinance (POBO), and was remanded in the custody of the Correctional Services Department until today. Principal Magistrate Mr Don So Man-lung, having considered the defendant’s background report, today imposed a sentence of four months’ imprisonment, suspended for three years.The court heard that at the material time, the defendant was a Foreman of the FEHD posted to the Cleansing and Pest Control Section (Central/Western). Amongst his subordinates was a Workman II of the FEHD.The defendant admitted that on September 27, 2023, for reason of settling a payment with the court, he solicited a loan of $60,000 from the aforesaid subordinate, and accepted the loan without the general or special permission of the Chief Executive.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the defendant had borrowed money from the said Workman II of FEHD but never sought any permission pursuant to the “Acceptance of Advantages (Chief Executive Permission) Notice”.The FEHD rendered full assistance to the ICAC during the investigation.The prosecution was today represented by Public Prosecutor Katie Fong, assisted by ICAC officer Tony Sze-To.The ICAC reminds civil servants to uphold integrity and financial prudence at all times. Civil servants should strictly adhere to the POBO as well as the provisions in the “Acceptance of Advantages (Chief Executive Permission) Notice” relating to the acceptance of advantages offered to them in their private capacity.
14
Aug 2024
Then manager of printing company charged by ICAC for arranging mother to be company staff and deceive wages valued over $400KThe ICAC today (August 14) charged a then manager of a printing company and his mother, for arranging for his mother to be the company’s temporary staff and falsely representing her working hours to deceive wages totalling over $400,000 in 18 consecutive months.Fong Lung, 38, the then Service Delivery Management Manager of FUJIFILM Business Innovation Hong Kong Limited (FUJIFILM); and Cheung Lai-lin, 67, housewife, jointly face 18 counts of fraud, contrary to section 16(A) of the Theft Ordinance. They were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts on Friday (August 16) for plea.The ICAC investigation arose from a corruption complaint. Enquiries subsequently revealed the alleged fraudulent claims. At the material time, Fong was a Service Delivery Management Manager of the FUJIFILM and was authorised to engage temporary staff to tackle the manpower shortage, through a human resources agency engaged by FUJIFILM.In August 2021, Fong was alleged to have arranged Cheung to be employed by human resources agency at an hourly rate of $75. The agency then deployed Cheung to work in FUJIFILM.The 18 charges alleged that the two defendants, between August 2021 to February 2023, in Hong Kong, by deceit, namely by falsely representing to FUJIFILM and a human resources agency that Cheung’s working timesheets and related invoices, for 18 consecutive months since August 2021, were genuine, and with intent to defraud, induced the mentioned companies to release related wage payments, which resulted in benefit to the two defendants or prejudice to the two companies.ICAC investigation revealed that within the 18 months, Fong and Cheung falsely represented the total number of hours worked by Cheung were 5,700 hours and induced the aforesaid human resources agency to, in accordance with its policy, release wage payments of a total sum of over $400,000 to Cheung, and induced FUJIFILM released a total sum of around $500,000 as service fee to the aforesaid human resources agency. However, Cheung had never performed any duties in FUJIFILM at the material time.FUJIFILM rendered full assistance to the ICAC during its investigation into the case.
13
Aug 2024
Former staff of frozen meat supplier charged by ICAC for allegedly concealing his operation of same business and deceiving employer into selling goods valued over $5mThe ICAC today (Aug 13) charged a then senior sales executive of a frozen meat supplier, for allegedly concealing the conflict of interest during his employment and inducing the employer to sell goods to a company operated by him with the same business, deceiving goods supply valued over $5 million.Cheng Ming-lim, 48, the then Senior Sales Executive of H.R. Woodward Food Service Co. Limited (H.R. Woodward), faces one count of fraud, contrary to section 16A of the Theft Ordinance. He was released on ICAC bail, pending his appearance at the West Kowloon Magistrates’ Courts on Thursday (August 15) for his case to be transferred to the District Court for plea.The ICAC investigation arose from a corruption complaint. Inquiries subsequently revealed the alleged fraudulent claim. At the material time, Cheng was the Senior Sales Executive of H.R. Woodward who was responsible for securing customers for the H.R. Woodward and processing purchase orders received from customers.He also had the discretion to set prices for purchase orders and payment terms. All staff member of H.R. Woodward were not allowed to operate any company or being employed under company which had the same business nature with H.R. Woodward. The employment contract also stated that Cheng should not be employed, own, manage, operate, control or participate in any related food services business.The charge alleged that Cheng, between October 2020 and February 2022, by deceit, namely by concealing from or failing to disclose to H.R. Woodward his operation of Andreessen Food Service Company Limited (Andreessen), and with intend to defraud, induced H.R. Woodward to sell goods to Andreessen, which resulted in benefit to Andreessen or in prejudice to H.R. Woodward.ICAC investigation revealed that Andreessen was incorporated in 2016 with the defendant’s then wife and mother as the sole shareholder-cum-director and secretary respectively. The defendant is alleged that after he introduced Andreessen to be a customer of H.R. Woodward in 2021, he had, in his capacity as the Senior Sales Executive of H.R. Woodward, handled the purchase orders placed by himself on behalf of Andreessen.Between July and December 2021, Andreessen placed various purchase orders with H.R. Woodward in the total sum of over $5.23million. Later Andreessen failed to settle payments amounting around $5.12million. After returning of partial delivered products, Andreessen still failed to settle $2.71million with H.R. Woodward.The H.R. Woodward rendered full assistance to the ICAC during its investigation into the case.
12
Aug 2024
Senior manager of contractor charged by ICAC admits accepting a $1m bribe over $260m construction projectsA senior manager of a main contractor, charged by the ICAC, accepted a bribe of $1 million from a subcontractor for favouring the latter over the Kai Tak Sports Park project and a private construction project. The defendant today (August 12) pleaded guilty at the District Court.Ringo Ng Wo-nang, 60, then senior manager of site services department of Hip Hing Construction Company Limited (Hip Hing), plead guilty to one count of agent accepting an advantage, contrary to Section 9(1)(b) of the Prevention of Bribery Ordinance.The defendant was granted bail by Deputy District Judge Ms Leung Ka-kie, and the case was adjourned to October 8 for the defendant’s mitigation.The court heard that, at the material time, Hip Hing was the main contractor of various public and private construction projects in Hong Kong. Lee Shing Masonry Engineering Limited (Lee Shing) obtained from Hip Hing a masonry contract worth over $58 million of a private construction project in 2020, and further bid for two masonry works contracts worth totalling about $200 million of the Kai Tak Sports Park project in 2021.The defendant was a senior manager of site services department of Hip Hing in charge of the site services support of the construction sites managed by Hip Hing. Due to operational need, he had access to the tender information of Hip Hing’s projects.ICAC enquiries revealed that since early 2019, a Lee Shing director cum shareholder (the director) had sought advice from the defendant on matters concerning the cooperation between Lee Shing and Hip Hing, including the tender progress of the masonry works under Hip Hing and how to submit quotations to Hip Hing. The defendant also tipped off the director about the tender progress of Hip Hing’s projects, and claimed that he had obtained favourable assistance to Lee Shing, such as releasing project payments promptly and raising the amount of the variation order of the project.In April 2020, during the tender process for the masonry works of the aforementioned private construction project, the defendant claimed to the director that he had communicated with one of the relevant officers in charge of the project. Lee Shing later obtained the masonry works contract for the project from Hip Hing. After that, the director also asked the defendant about the quotation matter on the variation order of the project.In addition, in May 2021, the defendant tipped off the director that Hip Hing was about to send out tender invitations for masonry works of the northern part of the Kai Tak Sports Park project. On July 27 of the same year, the director consulted the defendant on the price matters of the project, and the defendant agreed to discuss with him that afternoon. Later that day, the director handed over a recycle bag containing $1 million in cash to the defendant and was caught red-handed by ICAC officers.Three other defendants in this case earlier pleaded not guilty to their charges, and the trial commenced today at the District Court.The ICAC reminds practitioners to adhere strictly to the Prevention of Bribery Ordinance and not to use their official capacity for personal gains, thus destroying the fair and clean business environment. The Construction Industry Integrity Charter 2.0 launched by the ICAC, the Development Bureau and the Construction Industry Council requires the participating companies to put in place an Integrity Management System (IMS) (cpas.icac.hk/EN/Info/TP_Library?cate_id=10025). IMS prohibits staff from soliciting and accepting advantages from any organisations or individuals having business dealings with the companies.Hip Hing rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Eddie Sean and Vienna Fong, assisted by ICAC officers Wily Chan and Rex Tse.
05
Aug 2024
Ex-site team leader of Third Runway Project charged by ICAC jailed 6 months for briberyIn recent years, the ICAC has taken a series of enforcement actions against solicitation and acceptance of bribe payments from construction workers and launched a series of relevant publicity and education programmes. One more former site team leader of a sub-contractor of the Third Runway Project of the Hong Kong International Airport (Third Runway Project) was today (August 5) sentenced to six months’ imprisonment at the West Kowloon Magistrates’ Courts for soliciting and accepting bribes from two carpenters over their employment.Mok Pak-cheung, 64, former site team leader for carpentry works of MLife Engineering Limited (MEL), was earlier found guilty of 12 charges – three of agent soliciting an advantage; and nine of agent accepting an advantage, all contrary to section 9(1)(a) of the Prevention of Bribery Ordinance.In sentencing, Magistrate Mr Pang Leung-ting noted that the defendant had committed such offences continuously for 11 months. The defendant’s acts were not tolerated in a civilised society, and an immediate custodial sentence was inevitable. The defendant was also ordered to return the received bribes of $19,700 within seven days as restitution.The ICAC has so far charged 28 persons, most of whom were site team leaders of a sub-contractor, for collecting bribes totalling over $1.9 million from more than 130 workers of the Third Runway Project. Twenty-two defendants, including Mok, had pleaded guilty or were found guilty after trial, receiving sentences up to 16 months in jail. Another defendant is awaiting plea.An ICAC spokesperson urges construction workers not to tolerate corruption. Should they be asked to pay bribes in exchange for their employment, they should reject and report to the ICAC immediately. ICAC’s report corruption hotline: 25 266 366. The ICAC calls on construction companies to adopt the Integrity Risk Management (IRM) Toolkit on recruitment of workers produced by the ICAC to formulate and implement control measures to mitigate integrity risks on recruitment of workers, uplift the integrity management capability and uphold professionalism of the construction industry. IRM Toolkit on recruitment of workers is available at cpas.icac.hk/EN/Info/TP_Library?cate_id=10027.The court heard that at the material time, MEL was a sub-contractor of the Third Runway Project responsible for recruiting construction workers to conduct various works. Mok was a site team leader leading a team of carpenters working at the project’s construction site.ICAC investigations revealed that on different occasions in early June 2021, two carpenters discussed with Mok about joining MEL, and Mok solicited from the duo bribes of $200 to $300 per working day so as to assist them to secure their employment with MEL. The duo’s daily wage was agreed at about $1,600 while one of them did not join MEL eventually.The court heard that after joining MEL in the same month, the aforesaid carpenter found that his actual daily wage was only $1,400 and hence requested Mok to follow up. Mok explained to the carpenter that the daily wage was lower than the original amount because the latter was not a skilled carpenter. Mok asked the carpenter to continue to pay him a bribe on each working day and reduced the bribe to $100 per day. The carpenter reluctantly acceded to Mok’s solicitation.ICAC enquiries found that on various occasions between July 2021 and March 2022, Mok received bribes totalling $19,700 from the carpenter to assist in continuing the latter’s employment with MEL. The carpenter believed that he would have been terminated by Mok if he had not paid the bribes to Mok.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 cases.The prosecution was today represented by prosecuting counsel Eddie Sean, assisted by ICAC officer Ruby Cheung.

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