廉政快訊 ICAC POST

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Mar 2016,
Issue No.22

 

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All looking good for business

Hong Kong continued to prevail as one of the most exciting business hubs, boasting a clean civil service, a level playing field and a community that loathed corruption, said Mr Chow Chung-kong, Chairman of the Advisory Committee on Corruption (ACOC), which oversees the overall operation and policy matters of the ICAC.

Speaking at a recent annual press briefing, Mr Chow said international organisations, including the Heritage Foundation, consistently regarded Hong Kong as highly corruption-free.

Last month, the Index of Economic Freedom released by the Heritage Foundation, an influential public policy research institute based in the United States, ranked Hong Kong as the world’s freest economy for the 22nd consecutive year among 178 economies assessed.

Measuring the degree of economic freedom by assessing 10 factors, including “freedom from corruption”, the Heritage Foundation remarked that “the prosecution of a high-profile property developer for bribery in late 2014 illustrated why corruption rates remain low”.

ACOC Chairman Mr Chow Chung-kong speaks at a press conference.Earlier, Berlin-based Transparency International, a non-governmental organisation that monitors corruption in international development, published the annual Corruption Perceptions Index (CPI).

According to the CPI 2015, Hong Kong was ranked the 18th least corrupt place among 168 countries and territories surveyed, sharing with Japan the second cleanest place in Asia.

The good news was that Hong Kong’s overall score improved by one point from 74 to 75, indicating that the corruption situation remained stable, despite a slight drop of one place in the ranking.

Mr Chow further revealed that according to the 2015 ICAC Annual Survey, only 1.3 per cent of respondents had come across corruption in the past 12 months, a 0.2 percentage point lower than the previous year, showing a very low level of corruption in Hong Kong.

Almost all respondents or 99 per cent considered that keeping Hong Kong corruption-free was important to the overall development of the city, Mr Chow added.

Hong Kong people remained highly intolerant of corruption. The survey showed that on a scale of 0 to 10, with 0 representing total rejection and 10 representing total acceptance of corruption, the mean score for 2015 was 0.6, the lowest score since the question was first raised in 2010.

Corruption complaints in 2015: Total corruption complaints: 2,798,  Private sector: 65%,  Government departments: 28%,  Public bodies: 7%. Total private sector complaints: 1,831,  Building management: 39%, Construction: 11%, Finance and insurance: 7%, Catering and entertainment: 7%, Medical and social services: 4%, Transport: 4%, Others: 28%

ICAC talk on ethical governance for the business sector.In 2015, the ICAC received 2,798 corruption complaints, a rise of 18 per cent compared to 2,363 complaints received in 2014. Pursuable complaints increased by 25 per cent from 1,561 to 1,950.

Mr Chow said the statistics should not be interpreted in a pejorative sense. Rather, he considered the increase in corruption complaints the fruitful result of the ICAC’s continuous publicity campaign in the past year to encourage the public to report corruption.

Over the years, the ICAC has spared no efforts to foster ethical governance in the business sector. Last year, a three-year ethics promotion programme was launched for listed companies, comprising the production of a practical guide and a training package for directors and senior executives of listed companies respectively.

ACOC Chairman Mr Chow Chung-kong speaks at a press conference.The year 2015 marked the 30th Anniversary of the Advisory Services Group. The ICAC took the opportunity to rebrand the unit as the Corruption Prevention Advisory Service (CPAS), further expanding its services to raise the private sector’s corruption prevention awareness. Among the new features are a web portal comprising a cyber-learning resource centre, newsletters and corruption prevention tips to be launched later this year.

 

 

 

Illegal rebates ‘strike at the heart of business probity’

Five top executives of a publicly listed jewellery company including its chairman were sent to prison for devising and operating an elaborate bribery scheme for almost 10 years to boost sales.

Over the years, the company’s senior executives conspired to offer about $170 million in illegal rebates to travel agents who returned the favour by bringing more tour groups to the company’s showrooms.

In sentencing, the judge said that what the senior executives had done struck “at the heart of business probity” and “lying had become a matter of the company’s corporate policy”.

To cover up the scam, the company instructed its accounts department to pay the illegal commissions to offshore companies and remitted the monies back to Hong Kong for distribution to the travel agents.

The executives, among whom were qualified accountants, were charged by the ICAC with bribery, false accounting, theft and tax evasion. They were given jail terms of up to five years.

 

Graft prevention package for retail industry

Being internationally renowned as “a shopper’s paradise”, Hong Kong offers a huge variety of quality merchandise. As such, the retail industry employs over 270,000 employees.

However, certain key areas in retail operations are found vulnerable to risks of corruption and malpractices, which, if not properly mitigated, may lead to financial losses and undermine business reputation and good will.

To help raise the awareness of retail practitioners to the potential corruption risks and equip them with the knowledge to prevent such risks, the ICAC’s Corruption Prevention Department has produced a training package targeted for managers and operators.

The “Integrity + Quality: Shopper’s Paradise – Corruption Prevention Training Package for Retail Industry”, which is to be launched next month, features six drama videos covering common corruption pitfalls in retail operations – The corruption prevention training package sales operation, discounts and benefits, referral of customers, inventory control, procurement and staff administration.

The handy and user-friendly training package provides detailed analyses of the corruption risks featured in each video, recommends preventive measures, and highlights relevant provisions of the Prevention of Bribery Ordinance. For details about the training package, please contact:

Telephone: 25266363
Email: cpas@cpd.icac.org.hk
Webpage: https://cpas.icac.hk
Corruption Prevention Advisory Service