Scenario One - LEE
LEE's commissioning one of his project contractors to undertake decoration works for his home and only paying a minimal cost
Conflict of interest
Putting himself into a position of obligation
Not being alert of possible sweetening process
The contractor's bearing all costs incurred in the 3-day leisure in Italy
Conflict of interest
Putting himself into a position of obligation
Should have declare to the company
Analysis
As the project contractor is under LEE\'s supervision, to ask that particular contractor to do
the decoration for his home is a perceived conflict of interest situation that a professional
should avoid. If LEE has a good reason to commission the contractor for private works, he
should declare such a conflict of interest to his employer beforehand, to avoid any
misunderstanding or unnecessary speculation by others.
LEE has accepted a big favour, namely a handsome discount, from the contractor. He will
find it very difficult to discharge his supervision duties in relation to the contractor in an
impartial manner afterwards. Also, others may raise doubts about his integrity.
As a professional, he should be mindful of putting himself into a position of obligation to
someone else, as he may be asked to return a favour in his work. Corruption does not
always start with a bribe at the outset. An architect should be alert to possible sweetening
process whereby gifts and favours in different forms are being offered.
Analysis
LEE should follow the proper procedures in seeking the company's permission for accepting
the hospitality from the contractor after the site inspection work. He may have breached the
company's code of conduct if he did not declare such arrangements with the contractor.
By accepting these advantages from a contractor without the company's knowledge or
permission, LEE has put himself into a position of obligation, whereby he may feel obliged to
return the contractor a favour in his work.
Scenario Two - LEE's subordinate, CHAN
LEE sparing little time for on-site
supervision
Failure in exercising due diligence and care
CHAN borrowing money from staff of main
contractor
Conflict of interest
It was corruption if CHAN accepted the loan
for lax supervision over the contractor's work
LEE's reluctance in dealing with CHAN's
integrity problems
Deficiency in managing staff integrity
CHAN's connivance at forged documents submitted by main contractor
Potential conspiracy to defraud or corruption on the part of CHAN
Analysis
LEE should dedicate appropriate resources and time to on-site supervision to ensure the
quality of works in fulfilling his professional duties.
Analysis
It is an actual conflict of interest situation for a resident architect to borrow money from staff
of a contractor. CHAN may breach the company\'s code of conduct for doing so.
Besides money, gifts and a loan are also considered advantages under the Prevention of
Bribery Ordinance (PBO). If it can be proved that he exercised lax supervision over the
contractor's work because of his acceptance of a loan from the contractor, he committed an
offence under Section 9 of PBO.
Analysis
As a manager, LEE should treat his subordinate\'s integrity issues very seriously. After
hearing rumours about CHAN\'s borrowing money from a manager of the main contractor,
LEE should look into the matter and give timely and suitable advice to CHAN. He should
also make sure that the quality of works has not been compromised by CHAN.
His hesitation to deal with the matter may send a wrong signal to his staff that he condones
such behaviour, and reflects badly on his managerial competence.
Analysis
CHAN may be liable for conspiracy to defraud for conniving at forged documents submitted
by the main contractor. It is an act of corruption if CHAN has accepted an advantage, be it a
loan or other rewards, for turning a blind eye to the forged documents submitted by the
contractor.
Scenario Three - LEE's brother-in-law, JOHN
LEE's facilitating his brother-in-law to get a
contract for painting and plastering
Conflict of interest
Exercising undue influence
It was corruption if LEE accepted an
advantage for helping his brother-in-law to
get a contract.
Government clerk of works accepting
laisee and tea money
A breach of Section 3 of PBO and serious
conflict of interest
A serious corruption offence if the civil
servant accepted the money for showing
favour to contractors/ subcontractors; offerer
of a bribe will also be criminally liable.
No compromise with the corrupt.
Analysis
This is a conflict of interest situation that a professional should try to avoid. Even if LEE has
not accepted any advantage for himself, he should not exercise undue influence in facilitating
his brother-in-law to get the contract for painting and plastering. As stated in HKIA's Code of
Professional Conduct, a professional architect should avoid any action or situatio
inconsistent with his professional obligations or likely to raise doubts about his integrity.
It was corruption if LEE has accepted any advantage for helping his brother-in-law to get the
contract.
Analysis
By accepting laisee and tea money in his official capacity, the government clerk of works has
contravened Section 3 of Prevention of Bribery Ordinance (PBO), which prohibits a
government officer from accepting any advantages without the general or special permission
of the Chief Executive.
The government clerk of works will breach Section 4 of PBO if it can be established that he
has accepted the tea money or laisee for showing favour to contractors.
LEE's brother-in-law is actually a victim of corruption. He should walk tall and report
corruption to the ICAC.
Scenario Four - LEE and Supplier, YEUNG
Accepting invitations to lavish
entertainment provided by YEUNG
Investment in supplier's business
Conflict of interest
Sweetening process
LEE's tailor-making the tender
specifications to suit the materials to be
supplied by YEUNG
Exercising discretion without integrity
It was corruption if LEE agreed to do so in
return for personal gain
Analysis
Although entertainment is not considered an advantage under the Prevention of Bribery
Ordinance, an architect should avoid taking from business associates meals or entertainment
that are too frequent, excessive or lavish in nature, in order not to put himself into a position
of obligation where he may feel obliged to return a favour at work later on.
As a professional, he should exercise reasonable judgment when accepting any favours or
entertainment from people with whom he has business dealings.
Analysis
Investing in a supplier's business is a conflict of interest situation that should be dealt with
cautiously. A professional should stay away from any conflict of interest that makes it
difficult/impossible for him to discharge his professional duties in an impartial manner.
Analysis
It was corruption if LEE agreed to tailor-make the tender specifications in return for personal
gain. If he did so, he would have exercised his discretionary power without integrity and
breached the trust that was placed in him by his employer, his profession and the general
public. He might also breach HKIA\'s Code of Professional Conduct.
LEE's acts might have put public safety and lives at risk and caused innocent people to
suffer, as the materials supplied by YEUNG might not be up to standard.
As a professional who should have high integrity standards and proper regard for the
interests of all stakeholders, LEE should turn down the supplier\'s offer of bribes and report to
the ICAC immediately.
