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Building a problem

CS147 (Case 53)
Trades / Industries:

Peter, a Chief Engineer of a hotel, recently took up a renovation project for the hotel main lobby which cost five million dollars. Jackson, the proprietor of a construction company, was the contractor of the renovation work.

 

During the customary “God Worshipping” ceremony at the beginning of the project, Jackson offered Peter a red packet of 30,000 as a token of thanks for Peter’s assistance in awarding the project. Peter accepted the offer gratefully.

 

One month later, when Peter inspected the project progress, he noticed that the quality of marble used for the lobby was substandard and deviated from the tender specifications. Due to tight schedule and cost implications, Jackson was reluctant to replace the marble. To cover up the matter, Jackson agreed to rebate 2% of the project sum to Peter as his reward for his turning a blind eye to the substandard work. Although bewildered, Peter instantly agreed to the deal verbally so as not to destroy the harmonious relationship with Jackson.

Case Analysis

According to Section 9 of the Prevention of Bribery Ordinance (POBO), it would be an offence if Peter (an employee), without the approval of his employer, accepted an advantage (the red packet and the 2% rebate of the project sum) for awarding the renovation project to Jackson and turning a blind eye to the substandard work.  Jackson might also violate POBO for offering bribes.

 

Although the red packet was offered during the customary “God Worshipping” ceremony, accepting an advantage which was customary in any profession, trade, vocation or calling did not constitute a defence for bribery according to Section 19 of the POBO.  The court shall make the judgement based on whether permission has been given by the recipient’s principal.

 

The verbal agreement reached to cover up the substandard work was sufficient for a corruption case despite the fact that Peter had not actively solicited for or eventually not having received any commission from Jackson.

 

Peter might also breach the Rules of Conduct of the Hong Kong Institution of Engineers (HKIE) which states that a member of HKIE shall discharge his professional responsibilities with integrity, dignity, fairness and courtesy; and neither give nor accept any gift/ entertainment, payment or service of more than nominal value, to or from those having a business relationship with his employer or client without the consent of the latter.

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