Frozen meat supplier gets thirty months’ jail for offering $860,000 illegal rebates to chefs

2020-11-19

An operator of a frozen meat supplier, charged by the ICAC, was today (November 19) sentenced to 30 months’ imprisonment at the District Court after being convicted of offering illegal rebates totalling over $860,000 to chefs of a Chinese restaurant and three hotels in relation to porklings supplied by his company.

Cheung Chi-chiu, 48, operator of Cheung Sum Kee (CSK), was found guilty of four counts of conspiracy to offer advantages to an agent, contrary to Section 9(2)(a) of the Prevention of Bribery Ordinance and Section 159A of the Crimes Ordinance.

In convicting the defendant and passing the sentence, Deputy Judge Mr Bernard Chung said the corrupt dealings, which lasted four years and involved considerable amount of illegal rebates, had brought the restaurant and hotels concerned into disrepute.

The deputy judge added that a deterrent custodial sentence was necessary to convey a signal to the society that scheming to commit corruption was a serious crime.

The court heard that at the material time, the defendant was the operator of CSK, which supplied frozen porklings to various Chinese restaurants and hotels.

In around 2014, the defendant and Chan Sang-pan, the supervisor of the Chinese barbecue section of Nanhai No.1 (NH1), agreed that rebates would be given to Chan Sang-pan at $70 per porkling ordered by the Chinese restaurant. Under the agreement, Chan Sang-pan would not make any complaints about the quality of foods supplied by CSK.

Since then, the defendant had offered to Chan Sang-pan illegal rebates totalling about $260,000, including $7,380 wrapped in a brown envelope seized by ICAC officers when the defendant and Chan Sang-pan were arrested on January 3, 2018.

The court heard that a similar illegal rebate agreement was also made between the defendant and Chan Chiu-fai, the supervisor of the Chinese barbecue section of InterContinental Grand Stanford Hong Kong (IGS).

It was agreed that the defendant would offer a $10 illegal rebate to Chan Chiu-fai for each porkling ordered by IGS with CSK. As a result, illegal rebates involving over $185,000 were offered between January 1, 2014 and December 31, 2017.

During the same period, the defendant also offered illegal rebates totalling about $417,000 to two supervisors of two other hotels’ Chinese barbecue sections.

Chan Sang-pan and Chan Chiu-fai were also charged by the ICAC in separate cases for accepting illegal rebates. Chan Sang-pan was sentenced to three months’ imprisonment after pleading guilty to two counts of conspiracy to accept advantages as an agent. Chan Chiu-fai, who pleaded guilty to a similar charge, was ordered to perform 240 hours of community service.

NH1, IGS and the two other hotels concerned had rendered full assistance to the ICAC during its investigation into the case.

The prosecution was today represented by prosecuting counsel Lisa Remedios, assisted by ICAC officer Pius Chan.
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