Four jailed for $6.4m printing & design orders fraud involving NGO
2020-11-6
Two former employees of a non-governmental organisation (NGO) and two service suppliers, charged by the ICAC, were sentenced to jail terms up to 28 months at the District Court today (November 6) for deceiving the NGO into awarding printing and design orders worth totalling over $6.4 million by using false quotations.
Lee Tze-chiu, 57, former director of special events team of Project Orbis International, Inc (Orbis), was sentenced to 28 months’ imprisonment, while Andy Lam Siu-kei, 58, former senior development manager of special events team of Orbis, received a jail term of 14 months.
Eddie Ng Tat-ming, 62, proprietor of Promptitude Printing Co. (Promptitude), and Thomas Kwan Ka-wah, 46, proprietor of Janmex Creation (Janmex), were jailed for 12 months and 11 months respectively.
In sentencing, Deputy Judge Emily Cheung Sau-kwan reprimanded the defendants for breaching the trust placed on them and being selfish. Lee and Lam had brought Orbis into disrepute and caused financial loss to the organisation, while Ng and Kwan committed the offences for their own financial gains, the deputy judge added.
Lee was found guilty of one count of conspiracy to defraud, contrary to Common Law, while Ng pleaded guilty to the same charge.
Lam and Kwan pleaded guilty to one count of conspiracy to defraud they jointly faced, while Lam also pleaded guilty to one count of using false instruments, contrary to Section 73 of the Crimes Ordinance.
The case arose from a corruption complaint referred by Orbis. Subsequent ICAC enquiries revealed the above offences.
The court heard that at the material time, Lee and Lam were respectively director and senior development manager of the special events team of Orbis. The team was responsible for organising and managing all special fund raising events of Orbis in Hong Kong, and conducting procurement exercises for printing and design services.
Ng was the proprietor of Promptitude, which was a printing supplier of Orbis. Kwan was the proprietor of Janmex, a design service supplier of Orbis.
Between January 2013 and November 2017, the special events team conducted procurement exercises for 34 printing orders and 14 design orders, worth totalling over $6.4 million, for Orbis. Three written quotations were required for comparison for each procurement exercise.
The court heard that Lee and Ng had conspired together to defraud Orbis by falsely representing to Orbis in the procurement exercises for the 34 printing orders that two competitors of Promptitude were offering to provide printed materials for Orbis at higher prices.
As a result, bidding prices of Promptitude were purportedly the lowest, and the 34 printing orders in a total sum of about $4.2 million were awarded to Promptitude.
The court heard that during the abovementioned period, Lam and Kwan had conspired together to defraud Orbis by falsely representing to Orbis in the procurement exercises for 13 of the aforesaid design orders that two competitors of Janmex were offering to provide design services for Orbis at higher prices.
Because of their false representation, bidding prices of Janmex were purportedly the lowest in those procurement exercises. As a result, the 13 design orders in a total sum of over $2.2 million were awarded to Janmex.
The court also heard that Lam had used two false quotations purportedly issued by two other design companies in the procurement exercise for another design order.
Orbis had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by prosecution counsel Alex Ng, assisted by ICAC officer Gigi Ng.
Lee Tze-chiu, 57, former director of special events team of Project Orbis International, Inc (Orbis), was sentenced to 28 months’ imprisonment, while Andy Lam Siu-kei, 58, former senior development manager of special events team of Orbis, received a jail term of 14 months.
Eddie Ng Tat-ming, 62, proprietor of Promptitude Printing Co. (Promptitude), and Thomas Kwan Ka-wah, 46, proprietor of Janmex Creation (Janmex), were jailed for 12 months and 11 months respectively.
In sentencing, Deputy Judge Emily Cheung Sau-kwan reprimanded the defendants for breaching the trust placed on them and being selfish. Lee and Lam had brought Orbis into disrepute and caused financial loss to the organisation, while Ng and Kwan committed the offences for their own financial gains, the deputy judge added.
Lee was found guilty of one count of conspiracy to defraud, contrary to Common Law, while Ng pleaded guilty to the same charge.
Lam and Kwan pleaded guilty to one count of conspiracy to defraud they jointly faced, while Lam also pleaded guilty to one count of using false instruments, contrary to Section 73 of the Crimes Ordinance.
The case arose from a corruption complaint referred by Orbis. Subsequent ICAC enquiries revealed the above offences.
The court heard that at the material time, Lee and Lam were respectively director and senior development manager of the special events team of Orbis. The team was responsible for organising and managing all special fund raising events of Orbis in Hong Kong, and conducting procurement exercises for printing and design services.
Ng was the proprietor of Promptitude, which was a printing supplier of Orbis. Kwan was the proprietor of Janmex, a design service supplier of Orbis.
Between January 2013 and November 2017, the special events team conducted procurement exercises for 34 printing orders and 14 design orders, worth totalling over $6.4 million, for Orbis. Three written quotations were required for comparison for each procurement exercise.
The court heard that Lee and Ng had conspired together to defraud Orbis by falsely representing to Orbis in the procurement exercises for the 34 printing orders that two competitors of Promptitude were offering to provide printed materials for Orbis at higher prices.
As a result, bidding prices of Promptitude were purportedly the lowest, and the 34 printing orders in a total sum of about $4.2 million were awarded to Promptitude.
The court heard that during the abovementioned period, Lam and Kwan had conspired together to defraud Orbis by falsely representing to Orbis in the procurement exercises for 13 of the aforesaid design orders that two competitors of Janmex were offering to provide design services for Orbis at higher prices.
Because of their false representation, bidding prices of Janmex were purportedly the lowest in those procurement exercises. As a result, the 13 design orders in a total sum of over $2.2 million were awarded to Janmex.
The court also heard that Lam had used two false quotations purportedly issued by two other design companies in the procurement exercise for another design order.
Orbis had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by prosecution counsel Alex Ng, assisted by ICAC officer Gigi Ng.