NGO duo charged by ICAC over $10m EDB grant fraud
2021-11-16
The ICAC today (November 16) charged a director and a manager of a non-governmental organisation (NGO) for allegedly deceiving the Education Bureau (EDB) into granting funds totalling over $10 million to the NGO by making false representations in relation to after-school activities organised for primary and secondary school students.
The investigation arose from a corruption complaint filed with the ICAC. Upon completion of the investigation, the ICAC sought legal advice from the Department of Justice, which advised charging the duo.
Ho Hin-wah, 52, director of School Support Association Limited (SSAL), and Mandy Man Hoi-yan, 31, manager of SSAL, face three charges – two of conspiracy to defraud, contrary to Common Law; and one of conspiracy to use copies of false instruments, contrary to Sections 74 and 159A of the Crime Ordinance.
The defendants were released on ICAC bail, pending their court appearance in the West Kowloon Magistrates’ Courts on Thursday (November 18) for the case to be transferred to the District Court for plea.
At the material time, Ho and Man were respectively the director and manager of SSAL. Ho’s wife was the director of Childcare Association Limited (CAL). Both SSAL and CAL were NGOs approved by the EDB to implement the “School-based After-school Learning and Support Programmes – Community-based Projects” (the Programmes).
The Programmes aimed at improving learning effectiveness of needy students, broadening their learning experiences outside classrooms and promoting all-round development by providing after-school activities at primary and secondary schools. In the two school years of 2015/16 and 2016/17, the EDB granted funds to SSAL and CAL to implement the Programmes.
Two of the charges allege that between March 1, 2015 and the April 30, 2017, the duo conspired together and with Ho’s wife and two staff members of SSAL to defraud the EDB by falsely representing to the EDB that the part-time tutors engaged in teaching after-school academic activities in 72 projects under the Programmes were contracted either with SSAL or CAL throughout the above two school years, and that they were paid an hourly rate of either $165 or $195 for teaching.
The remaining charge alleges that between October 1, 2016 and January 25, 2017, the duo conspired together and with Ho’s wife to use copies of instruments, which were, and which they knew or believed to be false, with the intention of inducing the EDB to accept them as copies of genuine instruments, and by reason of so accepting them to do or not to do some act to the EDB’s prejudice.
It is alleged that the false instruments were bank statements for two bank accounts of SSAL and CAL covering the transactions between September and November 2016, and 332 cheques drawn from the aforesaid two bank accounts.
ICAC enquiries revealed that the EDB had granted about $6.5 million and $3.8 million respectively to SSAL and CAL for implementing the aforesaid 72 projects. It is alleged that the defendants had falsely represented to the EDB that the part-time tutors were paid an hourly rate of either $165 or $195, while they actually received $60 to $150 per hour. The above false instruments were allegedly produced to the EDB as tutors’ payment records.
The EDB has rendered full assistance to the ICAC during its investigation.
The investigation arose from a corruption complaint filed with the ICAC. Upon completion of the investigation, the ICAC sought legal advice from the Department of Justice, which advised charging the duo.
Ho Hin-wah, 52, director of School Support Association Limited (SSAL), and Mandy Man Hoi-yan, 31, manager of SSAL, face three charges – two of conspiracy to defraud, contrary to Common Law; and one of conspiracy to use copies of false instruments, contrary to Sections 74 and 159A of the Crime Ordinance.
The defendants were released on ICAC bail, pending their court appearance in the West Kowloon Magistrates’ Courts on Thursday (November 18) for the case to be transferred to the District Court for plea.
At the material time, Ho and Man were respectively the director and manager of SSAL. Ho’s wife was the director of Childcare Association Limited (CAL). Both SSAL and CAL were NGOs approved by the EDB to implement the “School-based After-school Learning and Support Programmes – Community-based Projects” (the Programmes).
The Programmes aimed at improving learning effectiveness of needy students, broadening their learning experiences outside classrooms and promoting all-round development by providing after-school activities at primary and secondary schools. In the two school years of 2015/16 and 2016/17, the EDB granted funds to SSAL and CAL to implement the Programmes.
Two of the charges allege that between March 1, 2015 and the April 30, 2017, the duo conspired together and with Ho’s wife and two staff members of SSAL to defraud the EDB by falsely representing to the EDB that the part-time tutors engaged in teaching after-school academic activities in 72 projects under the Programmes were contracted either with SSAL or CAL throughout the above two school years, and that they were paid an hourly rate of either $165 or $195 for teaching.
The remaining charge alleges that between October 1, 2016 and January 25, 2017, the duo conspired together and with Ho’s wife to use copies of instruments, which were, and which they knew or believed to be false, with the intention of inducing the EDB to accept them as copies of genuine instruments, and by reason of so accepting them to do or not to do some act to the EDB’s prejudice.
It is alleged that the false instruments were bank statements for two bank accounts of SSAL and CAL covering the transactions between September and November 2016, and 332 cheques drawn from the aforesaid two bank accounts.
ICAC enquiries revealed that the EDB had granted about $6.5 million and $3.8 million respectively to SSAL and CAL for implementing the aforesaid 72 projects. It is alleged that the defendants had falsely represented to the EDB that the part-time tutors were paid an hourly rate of either $165 or $195, while they actually received $60 to $150 per hour. The above false instruments were allegedly produced to the EDB as tutors’ payment records.
The EDB has rendered full assistance to the ICAC during its investigation.