Scenario One - CHAN's subordinate, HO
Site supervisory staff of ABC Company's
frequently gambling with and acceptng
lavish
entertainment from contractors
Perceived conflict of
interest
Sweetening process
Bad culture
HO's conniving at contractors' use of
unauthorised materials
Inappropriate exercise of
discretion
It was corruption if HO had accepted an
advantage as an incentive or reward for
tolerating the contractor's action.
CHAN's tolerance of subordinates having
unduly close association with
contractors
Deficiency in managing
staff
integrity
Analysis
Site supervisory staff Site supervisory staff's
frequently gambling with and accepting lavish
entertainment
from contractors
Their over-socialising with the contractors,
which is a
perceived conflict of interest situation, may
result in their
inability to discharge their duties impartially.
From past experience, corruption often begins
with a
"sweetening up" process laden with frequent and
unduly lavish
entertainment and offering of small gifts, so
that one will be
trapped in an embarrassing or compromising
situation when
one is asked to return a favour later on. We
should avoid
putting ourselves in a position whereby we may
feel an
obligation to reciprocate others.
The "wine and dine" culture does breed
corruption and put
professionalism at stake. It also undermines
public confidence
in the surveying profession.
Analysis
HO has inappropriately exercised discretion by
conniving at
contractors' use of unauthorised materials
without seeking the
approval of his superior. The quality of works
may be at risk.
HO will contravene Section 9 of Prevention of
Bribery
Ordinance if he, as an employee, has accepted an
advantage
without employer's permission, for abusing his
official position
in conniving at contractors\' use of
unauthorised materials.
Analysis
As a manager, CHAN should be alert to the
potential problems
that may result from bad culture. He should take
appropriate
steps to control the situation, including giving
timely and
suitable advice to staff, to avoid breeding
corruption and
integrity problems.
Scenario Two - Unauthorised Outside Work
WONG's expediting
processing of
payments to
subcontractors
Favouritism
it was corruption if WONG accepted an advantage for doing so
WONG's claim of doing
freelance work for
subcontractors
Conflict of interest
Unauthorised outside work
Possibly a cover-up for accepting corrupt payments
CHAN's not taking the "rumours" seriously
Tolerance towards fraudulent behaviour
Analysis
The quantity surveyor, WONG, should process the payments in a fair manner.
If it is proved that WONG has accepted an advantage, such as
cash, for expediting the processing of payments, he will
contravene S.9 of Prevention of Bribery Ordinance, which
prohibits an employee from accepting advantages without the
employer's permission when conducting his employer's affairs
or business.
As a professional, WONG should discharge his duties with
integrity, and in accordance with the highest standard of ethics.
He may also breach HKIS\' Rules of Conduct by accepting
advantages from a contractor who is connected with his
professional services provided to clients.
Analysis
This may only be a cover-up for accepting bribes. Even if the
excuse is true, WONG should have sought his employer's prior
permission for taking up outside work in accordance with the
company policy.
Taking up a job with a subcontractor with whom one has
business dealings is an obvious conflict of interest situation.
We should stay away from such a situation, in order to avoid
embarrassment and loss of objectivity.
Analysis
CHAN should not have accepted WONG's explanation without
queries. His hesitation to deal with the problem may send a
wrong signal to his staff that he condones such behaviour, and
reflects badly on his managerial competence.
Scenario Three - Conflict of Interest and Corruption
A Government clerk of
works accepting ˇ§tea
moneyˇ¨
Corruption involving a government officer
Offering bribe is a criminal offence
CHAN's brother-in-law should walk tall and report corruption
CHAN's assisting his
brother-in-law in
becoming a qualified
contractor of the
company
Conflict of interest
Misuse of authority
Should have declared the conflict to meet the "sunshine test"
CHAN's accepting loans
from his brother-in-law
Not alert to potential conflict of interest
CHAN's releasing
information of value
Misuse of confidential information
It was corruption if CHAN released the
information as a way to reciprocate
his brother-in-law's kindness in giving
him the loans
Analysis
By accepting tea money in his official capacity, the government
clerk of works has contravened Section 3 of Prevention of
Bribery Ordinance, 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
Prevention of Bribery Ordinance if it can be established that he
has accepted the "tea money" for showing favour to
contractors.
Anyone who offers an advantage to a government officer with
a corrupt motive will also commit a bribery offence.
CHAN's brother-in-law is actually a victim of corruption. He
should walk tall and report corruption to the ICAC.
Analysis
Even if CHAN genuinely thinks that his brother-in-law is a
competent contractor, and he has made the contractor
appointment in accordance with the company policy, CHAN
should have declared the conflict of interest in accordance with
the company policy, so as to meet the "sunshine test", i.e.
whether the issue can be discussed openly and the decision
disclosed without misgivings.
It may be a misuse of authority if CHAN has favoured his
brother-in-law by letting him become a qualified contractor of
his company. Common sense tells that this is a perceived
conflict of interest situation.
Analysis
CHAN now has business dealings with his brother-in-law. He
has not exercised sound judgment by accepting loans from his
brother-in-law. CHAN should have sought his employer's
permission for accepting the loan if he has a sound reason.
Analysis
As a professional, CHAN should treat the company information
with strict confidentiality. He may breach HKIS' Rules of
Conduct if he discloses the information to others.
CHAN may breach S.9 of the Prevention of Bribery Ordinance
if CHAN releases the information to reciprocate his brother-in-
law's lending money to him.
CHAN will have his career ruined if he unwittingly commits a
bribery offence. Professionals should live by a high standard of
integrity and resist the corruption temptations.
