Resources
Case Studies
From small gifts to blatant bribe
Leo, the head chef of a Chinese restaurant in a renowned hotel, was responsible for food purchasing. During an alumni reunion, he met an old classmate, Louis, who was now a food supplier of various food stalls and restaurants. Following the reunion, Louis sent Leo hampers and gifts during festive occasions and expressed interest in becoming a food supplier for Leo’s hotel.
Not long after, Leo’s hotel planned to host a “gourmet food festival” as part of a promotional campaign to boost business. Knowing that Leo was sourcing suppliers to secure the best prices with good quality, Louis contacted Leo for more details. Eager to win the contract, Louis asked Leo to provide him with the price quotations submitted by other suppliers so that he could beat the competitors with lower price. Louis promised to deposit 10% of the contract sum as a rebate into Leo’s personal account for Leo’s assistance. Faced with financial difficulties due to recent stock market losses, Leo eventually agreed to help Louis. Leo suggested transferring the rebate to his wife’s account to conceal their corrupt dealing.
Case Analysis
Leo is regarded as an agent of the hotel. Without the hotel’s permission, he accepted a rebate from Louis for abusing his official capacity to disclose other bidders’ information to the latter. Leo might breach Section 9 of the Prevention of Bribery Ordinance (POBO) while Louis might also commit the offence by offering a bribe. Accepting bribes, whether directly or indirectly through a third party, is against the law. If the purpose of offering the advantage is to induce the agent to do an act in relation to his principal’s business, both the offeror and the recipient would commit an offence under the POBO. Bidders’ or clients’ information is valuable to the hotel and staff members should strictly follow the guidelines laid down by the hotel for protecting confidential information.
On the other hand, hampers and gifts are advantages. According to Section 19 of the POBO, custom or trade practice cannot constitute a defence. If these gifts were offered to Leo with a corrupt motive, both Leo and Louis might commit a bribery offence, even if they were offered during festive occasions. Even if no corruption was involved, Leo should follow the hotel’s code of conduct regarding the acceptance of advantages to avoid conflict of interest. He should be particularly cautious of the sweetening process initiated by Louis’ offer of gifts. Accepting frequent gifts and favours will put the recipient in an obligatory position to reciprocate, compromising one’s objectivity in carrying out official duties and potentially leading to corruption.