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Case Studies
Defrauding payment by giving false information
In arranging the repair of an air-conditioning system of the hotel, a hotel's chief engineer conspired with a spare part supplier to deceive the hotel by claiming to have ordered a batch of extra and unnecessary spare parts for the project.
Asking the supplier to submit false invoices in respect of the false purchases, the chief engineer in return could pocket 90% o the payment. The false purchase caused the hotel to pay out over $60,000 for goods it never received.
Case Analysis
The chief engineer abused the trust of his employer and misused his authority to defraud in the process of procuring goods for his company, failing to fulfil his duty of loyalty to his employer. Apart from committing the conspiracy to defraud offence, he might also commit Section 9(3) of the Prevention of Bribery Ordinance by using false documents to deceive and mislead his employer for personal gain.
Management deficiencies would breed opportunities for corruption and malpractices. If proper systems of control were not in place, dishonest staff would exploit possible loopholes for personal gain, causing the company to suffer from financial loss and tarnished reputation.