Ex-manager of groceries retailer admits accepting bribes
2021-6-18
A former sourcing manager of a multinational groceries retailer, charged by the ICAC with bribery, admitted at the District Court today (June 18) that he had accepted illegal rebates and loan totalling over US$615,000 (about HK$4.8 million) and loan releases in the sum of about US$45,000 (about HK$350,000) from a supplier for placing toy orders worth totalling over US$20 million (about HK$156 million).
Pang Chun-kin, 39, former sourcing manager of Tesco International Sourcing Limited (Tesco Sourcing), pleaded guilty to three charges—two of conspiracy for an agent to accept an advantage, both contrary to section 9(1)(a) of the Prevention of Bribery Ordinance (POBO) and Section 159A of the Crimes Ordinance, and one of agent accepting an advantage, contrary to section 9(1)(a) of the POBO.
Deputy District Judge Mr Peter Hui Shiu-keung remanded the defendant in the custody of the Correctional Services Department until July 9 for sentence. Two other charges against the defendant, one of conspiracy for an agent to accept an advantage and one of agent accepting an advantage, were left on file at the District Court.
The court heard that the defendant joined Tesco Sourcing in 2006 and was promoted to sourcing manager in 2015. He was responsible for placing orders of toys and miscellaneous items with suppliers, designated and agreed by a senior buying manager of a sister company of Tesco Sourcing stationed in the UK, for their parent company.
In 2011, the defendant and senior buying manager sought to obtain funding to start their own business. On the senior buying manager’s suggestion, the defendant solicited rebate from the operator of a toy supplier of Tesco Sourcing, who agreed to pay three per cent of the amount of orders placed by Tesco Sourcing with the toy supplier handled by the defendant and the said senior buying managers as rebate.
Between March 23, 2011 and October 21, 2014, illegal rebates amounted to about US$ 500,000 (about HK$3.9 million) were paid to the defendant and the senior buying manager in relation to business transactions between the toy supplier and Tesco Sourcing totalling about US$16 million (about HK$124 million).
ICAC inquiries revealed that the defendant shared about half of the illegal rebates with the senior buying manager by paying cash to the latter when he visited Hong Kong.
The court heard that corrupt practice continued after the senior buying manager left the sister company in 2017 but the agreed percentage of illegal rebate lowered to one or two per cent of the amount of orders placed by Tesco Sourcing.
Between February 9, 2017 and January 27, 2018, business transactions between the aforesaid toy supplier and Tesco Sourcing amounted to about US$3 million (about HK$23 million). The defendant paid illegal rebates of about US$16,000 (about HK$124,000) collected from the toy supplier to another buying manager of the sister company of Tesco Sourcing.
The defendant’s share of illegal rebates, totalling about US$45,000 (about HK$350,000), were set off as partial release of a loan of US$100,000 (about HK$780,000) the defendant borrowed from the operator of the toy supplier in about March 2015.
Tesco Sourcing, its parent company and sister company concerned, had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by Senior Public Prosecutor Marcus Lee, assisted by ICAC officers Jason Tsang and Carin Chan.
Pang Chun-kin, 39, former sourcing manager of Tesco International Sourcing Limited (Tesco Sourcing), pleaded guilty to three charges—two of conspiracy for an agent to accept an advantage, both contrary to section 9(1)(a) of the Prevention of Bribery Ordinance (POBO) and Section 159A of the Crimes Ordinance, and one of agent accepting an advantage, contrary to section 9(1)(a) of the POBO.
Deputy District Judge Mr Peter Hui Shiu-keung remanded the defendant in the custody of the Correctional Services Department until July 9 for sentence. Two other charges against the defendant, one of conspiracy for an agent to accept an advantage and one of agent accepting an advantage, were left on file at the District Court.
The court heard that the defendant joined Tesco Sourcing in 2006 and was promoted to sourcing manager in 2015. He was responsible for placing orders of toys and miscellaneous items with suppliers, designated and agreed by a senior buying manager of a sister company of Tesco Sourcing stationed in the UK, for their parent company.
In 2011, the defendant and senior buying manager sought to obtain funding to start their own business. On the senior buying manager’s suggestion, the defendant solicited rebate from the operator of a toy supplier of Tesco Sourcing, who agreed to pay three per cent of the amount of orders placed by Tesco Sourcing with the toy supplier handled by the defendant and the said senior buying managers as rebate.
Between March 23, 2011 and October 21, 2014, illegal rebates amounted to about US$ 500,000 (about HK$3.9 million) were paid to the defendant and the senior buying manager in relation to business transactions between the toy supplier and Tesco Sourcing totalling about US$16 million (about HK$124 million).
ICAC inquiries revealed that the defendant shared about half of the illegal rebates with the senior buying manager by paying cash to the latter when he visited Hong Kong.
The court heard that corrupt practice continued after the senior buying manager left the sister company in 2017 but the agreed percentage of illegal rebate lowered to one or two per cent of the amount of orders placed by Tesco Sourcing.
Between February 9, 2017 and January 27, 2018, business transactions between the aforesaid toy supplier and Tesco Sourcing amounted to about US$3 million (about HK$23 million). The defendant paid illegal rebates of about US$16,000 (about HK$124,000) collected from the toy supplier to another buying manager of the sister company of Tesco Sourcing.
The defendant’s share of illegal rebates, totalling about US$45,000 (about HK$350,000), were set off as partial release of a loan of US$100,000 (about HK$780,000) the defendant borrowed from the operator of the toy supplier in about March 2015.
Tesco Sourcing, its parent company and sister company concerned, had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by Senior Public Prosecutor Marcus Lee, assisted by ICAC officers Jason Tsang and Carin Chan.