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Case Studies
Defrauding job payments by false invoices
Using a number of false invoices, a company's lift maintenance engineer conspired with two maintenance supervisors and a sub-contractor to defraud his company by claiming that certain jobs were carried out by the sub-contractor whereas the jobs were actually done by the maintenance engineer's subordinates. The offences came to light when one of the company’s workers who carried out the jobs suspected irregularities and reported to the ICAC.
Case Analysis
Other than committing a deception offence, the maintenance engineer breaches the Rules of Conduct of the Hong Kong Institution of Engineers, which require an engineer to treat his colleagues and co-workers fairly and to avoid abusing his authority. Misusing his supervisory position for private gain, the maintenance engineer breaches the law and undermines the financial interest of his company.
Implementing proper controls on contracting procedures, carrying out frequent random supervisory checks and conducting regular communication with contractors and staff can help detect early symptoms of irregularities and prevent such malpractices from happening. Encouraging staff to report malpractices to senior management or the compliance officer through proper channels of complaints will also be effective in stopping unscrupulous staff from committing a crime or malpractice.