Ex-CHP consultant charged with MIPO and fraud over HK$4.2m services for overseas health organisations
2021-4-13
The ICAC yesterday (April 12) charged a former consultant of the Centre of Health Protection (CHP) with misconduct in public office (MIPO) and fraud for abusing his official capacity for personal gain in tuberculosis (TB) drug testing and other services, worth totalling over HK$4.2 million, provided by CHP to three international and overseas health organisations.
Joseph Kam Kai-man, 63, former Consultant Medical Microbiologist of CHP of Department of Health (DH), faces a total of seven charges—four of MIPO, contrary to the Common Law; two of fraud, contrary to Section 16A(1) of the Theft Ordinance; and one of using a false instrument, contrary to Section 73 of the Crimes Ordinance.
The case arose from a corruption complaint referred by DH. The ICAC gratefully acknowledges all international, national and local authorities and parties concerned for their valuable assistance to the Commission during its investigation into the case, including arranging interviews with overseas witnesses in and outside Hong Kong.
At the material time, the defendant was a Consultant Medical Microbiologist of DH posted to the Public Health Laboratory Services Branch of CHP. He was in charge of a number of laboratories, including the Hong Kong Tuberculosis Reference Laboratory (HKTRL) operated by DH—which was recognised by the World Health Organization (WHO) as a supranational reference laboratory for conducting anti-TB drug susceptibility testing.
Hong Kong Association of Medical Microbiologists (HKAMM) was a non-profit making organisation set up by the defendant and other local microbiologists in 1992. The defendant was its chairman between 1992 and 1999.
National Institute of Infectious Diseases (NIID), which conducts researches on infectious diseases and develops vaccines, is a research institute attached to the Ministry of Health, Labour and Welfare of Japan.
Foundation for Innovative New Diagnostics (FIND) is a Switzerland-based non-profit organisation that supports the development of and access to diagnostics for infectious diseases in low-resource settings.
The four MIPO charges, which took place between September 2005 and January 2013, allege that the defendant had wilfully misconducted himself in the course of or in relation to his public office, without reasonable excuse or justification.
One of the MIPO charges alleges that the defendant had falsely represented to a representative of NIID or NIID that HKAMM was a public institution which was the same as DH; that he had the authority to enter into services agreements with NIID for organising seven workshops and a meeting relating to the tracking of foodborne infections (those events); and that the grants totalling 15 million Japanese yen (about HK$1.28 million) were for DH to host those events.
It is alleged that the defendant had entered into those agreements with NIID without DH’s approval; caused DH’s staff to organise those events without disclosing to DH that he had received the grants from NIID; and received the grants with a bank account of HKAMM solely controlled by him.
Two other MIPO charges allege that the defendant had falsely represented to two representatives of WHO or WHO that HKAMM was a contractual partner or “working partner” of HKTRL; that he had the authority to enter into three agreements with WHO for anti-TB drug susceptibility testing services to be provided by the HKTRL; and that the services fees totalling over US$64,000 (about HK$500,000) in respect of the agreements were for HKTRL to implement the services.
It is alleged that the defendant had entered into those agreements with WHO without DH’s approval; caused DH’s staff to carry out those services without disclosing to DH that he would receive the service fees from WHO; and received the service fees with the bank account of HKAMM solely controlled by him.
The remaining MIPO charge alleges that the defendant had falsely represented to a representative of FIND or FIND that HKAMM was a non-profit agency equivalent to HKTRL and was permitted to receive payments on the latter’s behalf; that he had the authority to sign two memoranda of understanding (MoUs) with FIND for training and technical assistance relating to anti-TB drug susceptibility testing to be provided by HKTRL; and that service fees totalling about US$240,000 (over HK$1.86 million) in respect of the two MoUs were for HKTRL to implement the services.
It is alleged that the defendant had signed the two MoUs with FIND without DH’s approval; caused DH’s staff to carry out those services without disclosing to DH that he would receive the service fees from FIND; and received the service fees with the bank account of HKAMM solely controlled by him.
The two fraud charges took place predominantly after the defendant started his pre-retirement leave.
The charges allege that between April 2012 and March 2014, the defendant had falsely represented to one of the aforesaid WHO representatives that HKAMM was a “working partner” of HKTRL which had no independent bank account to receive payments from WHO, and with intent to defraud, induced the representative to enter into three other agreements on training and anti-TB drug susceptibility testing, and transfer about US$80,000 (about HK$620,000) in respect of those agreements into the aforesaid bank account of HKAMM, resulting in benefit to himself.
The remaining charge alleges that in December 1992, the defendant used a false account opening form of a local bank, with the intention of inducing its staff members to accept it as genuine. It is alleged that the form concerned was used to open the aforesaid bank account of HKAMM.
The defendant has been released on ICAC bail, pending his appearance at the Eastern Magistrates’ Courts tomorrow (April 14) for the case to be transferred to the District Court for plea.
Joseph Kam Kai-man, 63, former Consultant Medical Microbiologist of CHP of Department of Health (DH), faces a total of seven charges—four of MIPO, contrary to the Common Law; two of fraud, contrary to Section 16A(1) of the Theft Ordinance; and one of using a false instrument, contrary to Section 73 of the Crimes Ordinance.
The case arose from a corruption complaint referred by DH. The ICAC gratefully acknowledges all international, national and local authorities and parties concerned for their valuable assistance to the Commission during its investigation into the case, including arranging interviews with overseas witnesses in and outside Hong Kong.
At the material time, the defendant was a Consultant Medical Microbiologist of DH posted to the Public Health Laboratory Services Branch of CHP. He was in charge of a number of laboratories, including the Hong Kong Tuberculosis Reference Laboratory (HKTRL) operated by DH—which was recognised by the World Health Organization (WHO) as a supranational reference laboratory for conducting anti-TB drug susceptibility testing.
Hong Kong Association of Medical Microbiologists (HKAMM) was a non-profit making organisation set up by the defendant and other local microbiologists in 1992. The defendant was its chairman between 1992 and 1999.
National Institute of Infectious Diseases (NIID), which conducts researches on infectious diseases and develops vaccines, is a research institute attached to the Ministry of Health, Labour and Welfare of Japan.
Foundation for Innovative New Diagnostics (FIND) is a Switzerland-based non-profit organisation that supports the development of and access to diagnostics for infectious diseases in low-resource settings.
The four MIPO charges, which took place between September 2005 and January 2013, allege that the defendant had wilfully misconducted himself in the course of or in relation to his public office, without reasonable excuse or justification.
One of the MIPO charges alleges that the defendant had falsely represented to a representative of NIID or NIID that HKAMM was a public institution which was the same as DH; that he had the authority to enter into services agreements with NIID for organising seven workshops and a meeting relating to the tracking of foodborne infections (those events); and that the grants totalling 15 million Japanese yen (about HK$1.28 million) were for DH to host those events.
It is alleged that the defendant had entered into those agreements with NIID without DH’s approval; caused DH’s staff to organise those events without disclosing to DH that he had received the grants from NIID; and received the grants with a bank account of HKAMM solely controlled by him.
Two other MIPO charges allege that the defendant had falsely represented to two representatives of WHO or WHO that HKAMM was a contractual partner or “working partner” of HKTRL; that he had the authority to enter into three agreements with WHO for anti-TB drug susceptibility testing services to be provided by the HKTRL; and that the services fees totalling over US$64,000 (about HK$500,000) in respect of the agreements were for HKTRL to implement the services.
It is alleged that the defendant had entered into those agreements with WHO without DH’s approval; caused DH’s staff to carry out those services without disclosing to DH that he would receive the service fees from WHO; and received the service fees with the bank account of HKAMM solely controlled by him.
The remaining MIPO charge alleges that the defendant had falsely represented to a representative of FIND or FIND that HKAMM was a non-profit agency equivalent to HKTRL and was permitted to receive payments on the latter’s behalf; that he had the authority to sign two memoranda of understanding (MoUs) with FIND for training and technical assistance relating to anti-TB drug susceptibility testing to be provided by HKTRL; and that service fees totalling about US$240,000 (over HK$1.86 million) in respect of the two MoUs were for HKTRL to implement the services.
It is alleged that the defendant had signed the two MoUs with FIND without DH’s approval; caused DH’s staff to carry out those services without disclosing to DH that he would receive the service fees from FIND; and received the service fees with the bank account of HKAMM solely controlled by him.
The two fraud charges took place predominantly after the defendant started his pre-retirement leave.
The charges allege that between April 2012 and March 2014, the defendant had falsely represented to one of the aforesaid WHO representatives that HKAMM was a “working partner” of HKTRL which had no independent bank account to receive payments from WHO, and with intent to defraud, induced the representative to enter into three other agreements on training and anti-TB drug susceptibility testing, and transfer about US$80,000 (about HK$620,000) in respect of those agreements into the aforesaid bank account of HKAMM, resulting in benefit to himself.
The remaining charge alleges that in December 1992, the defendant used a false account opening form of a local bank, with the intention of inducing its staff members to accept it as genuine. It is alleged that the form concerned was used to open the aforesaid bank account of HKAMM.
The defendant has been released on ICAC bail, pending his appearance at the Eastern Magistrates’ Courts tomorrow (April 14) for the case to be transferred to the District Court for plea.