Ex-manager of power supplier’s sister firm charged by ICAC sentenced for conflicts of interest over $130,000 loans from contractor

2021-11-18

A former project manager of a sister company of a power supplier, charged by the ICAC, was sentenced at the Kwun Tong Magistrates’ Courts today (November 18) for failing to declare conflicts of interest after having accepted loans totalling $135,000 from a contractor of cable trenching works under his supervision.

Chan Ka-man, 46, former project manager of CLP Engineering Limited (CLP Engineering, subsequently renamed as CLPe Solutions Limited), was sentenced by Magistrate Miss Lau Suk-han to four months’ imprisonment, suspended for two years.

The defendant was earlier found guilty of four counts of agent using a document with intent to deceive his principal, contrary to Section 9(3) of the Prevention of Bribery Ordinance.

The court heard that at the material time, CLP Engineering was a sister company of CLP Power Hong Kong Limited (CLP Power) responsible for cable trenching works awarded by CLP Power. CLP Engineering and CLP Power were subsidiaries of CLP Holdings Limited (CLP Holdings).

The defendant was a project manager of CLP Engineering posted to its distribution cable section of the power engineering branch. He was tasked to supervise cable trenching works carried out by contractors in Sham Shui Po District.

According to the Code of Conduct of CLP Holdings (the Code of Conduct), all employees of the company and its subsidiaries are prohibited from accepting any advantages, including loans, from any individuals or organisations having dealings with CLP Holdings and its subsidiaries. Employees should also avoid situations giving rise to conflicts of interest and should report any potential conflicts of interest to the employer.

Between 2014 and 2017, the defendant attended four annual seminars of CLP Engineering which served to remind employees to comply with the Code of Conduct. On each occasion, he had signed a “Code of Conduct Compliance Statement” in which he declared that he did not have any conflicts of interest and had not violated the Code of Conduct.

But ICAC enquiries revealed that between November 2014 and March 2017, the defendant had accepted five loans totalling $135,000 from a contractor carrying out cable trenching works supervised by him.

The ICAC investigation arose from a corruption complaint referred by CLP Holdings, which rendered full assistance to the ICAC during its investigation into the case.

The prosecution was today represented by Senior Public Prosecutor Peggy Leung, assisted by ICAC officers Tim Lam and Kingsley Chow.

The ICAC reminds staff of business organisations to abide by the anti-bribery laws. They should also avoid situations giving rise to conflicts of interest and report any such conflicts to the employer to avoid contravening the law.
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