Former Bank of China executive and merchant jailed for bribery
2000-12-18
A former Assistant General Manager of the Hong Kong Branch of Bank of China (BOC Hong Kong) was jailed for two-and-a-half years at District Court today (Monday) for accepting over HK$3.69 million in bribes for assisting in the application and release of a HK$312 million (US$40 million) loan to an investment company.
Li Defan, the former bank executive, was also ordered to pay the bank HK$3.69 million in restitution.
Li, 48, was found guilty of two counts of accepting bribes from Fan Yingchao, 47, director and shareholder of Shing Hung Investments Limited (SHIL).
Fan was convicted of three counts of offering bribes to Li and another BOC Hong Kong employee. He was jailed for two years and nine months.
Judge Day remarked that immediate custodial sentences were imposed since the offences constituted a breach of trust.
The judge said the offences would have been more serious should the bribe payments be made before the approval of the loan.
The judge added that in sentencing, he had taken into account the two defendants' clear records and good background.
The court heard that SHIL had a development project in Zhengzhou City, Henan Province.
Upon the completion of Phase I of the project, SHIL sought a US$40 million loan for the Phase II development.
Sometime in 1996, Fan approached Li for applying the loan.
In January 1997, Li with three subordinates, including manager Tse Shu-sun and officer Chan Yim-mui, made a site visit in Zhengzhou.
On a day before the Lunar New Year in February 1997, Fan asked to meet Tse. When Tse got into Fan's private car, Fan handed to Tse a red packet containing an unspecified amount of HK$1,000 banknotes. Tse refused to accept the red packet.
On June 2, 1997, Fan formally applied to BOC Hong Kong for a term loan of US$40 million.
On July 17, 1997, the application was approved by the BOC Hong Kong's General Managers' Office of Loan Assessment, of which Li was a member.
BOC Zhengzhou Branch Office (BOC Zhengzhou) was asked to monitor the usage of the loan, and the release of the loan had to be supported by documents proving its utilisation.
Two months later, SHIL encountered some problems in drawing down the loan from BOC Zhengzhou.
Li instructed one of his subordinates to contact BOC Zhengzhou. As a result, part of the loan was then released to SHIL without supporting documents.
On October 6, 1997, two cheques in the sums of HK$1,800,000 and HK$1,896,706 were deposited into Li's bank account by a company owned by Fan.
The prosecution was today represented by Walter Lau on a fiat, assisted by ICAC officer Anthony Chun.
Li Defan, the former bank executive, was also ordered to pay the bank HK$3.69 million in restitution.
Li, 48, was found guilty of two counts of accepting bribes from Fan Yingchao, 47, director and shareholder of Shing Hung Investments Limited (SHIL).
Fan was convicted of three counts of offering bribes to Li and another BOC Hong Kong employee. He was jailed for two years and nine months.
Judge Day remarked that immediate custodial sentences were imposed since the offences constituted a breach of trust.
The judge said the offences would have been more serious should the bribe payments be made before the approval of the loan.
The judge added that in sentencing, he had taken into account the two defendants' clear records and good background.
The court heard that SHIL had a development project in Zhengzhou City, Henan Province.
Upon the completion of Phase I of the project, SHIL sought a US$40 million loan for the Phase II development.
Sometime in 1996, Fan approached Li for applying the loan.
In January 1997, Li with three subordinates, including manager Tse Shu-sun and officer Chan Yim-mui, made a site visit in Zhengzhou.
On a day before the Lunar New Year in February 1997, Fan asked to meet Tse. When Tse got into Fan's private car, Fan handed to Tse a red packet containing an unspecified amount of HK$1,000 banknotes. Tse refused to accept the red packet.
On June 2, 1997, Fan formally applied to BOC Hong Kong for a term loan of US$40 million.
On July 17, 1997, the application was approved by the BOC Hong Kong's General Managers' Office of Loan Assessment, of which Li was a member.
BOC Zhengzhou Branch Office (BOC Zhengzhou) was asked to monitor the usage of the loan, and the release of the loan had to be supported by documents proving its utilisation.
Two months later, SHIL encountered some problems in drawing down the loan from BOC Zhengzhou.
Li instructed one of his subordinates to contact BOC Zhengzhou. As a result, part of the loan was then released to SHIL without supporting documents.
On October 6, 1997, two cheques in the sums of HK$1,800,000 and HK$1,896,706 were deposited into Li's bank account by a company owned by Fan.
The prosecution was today represented by Walter Lau on a fiat, assisted by ICAC officer Anthony Chun.