Company director and purchaser charged by ICAC jailed for 22 and 17 months for offering and accepting $8.4m bribes
2022-10-24
A director of a garment accessories trading company and a former purchaser of a garment manufacturer, charged by the ICAC, were respectively sentenced to 22 and 17 months’ imprisonment at the District Court today (October 24) for offering and accepting bribes totalling about $8.4 million in relation to purchase orders worth over $36 million placed by two garment manufacturers in seven years.
In sentencing, Deputy District Judge Winnie Lau said bribery was a serious offence warranting a deterrent sentence. The court considered that the culpability of the duo was equal and that it had to tackle relevant bad practices in the industry.
Ho Kwok-wing, 46, sole director-cum-shareholder of Po Yuen Hong Company Limited (Po Yuen Hong) was sentenced to 22 months’ imprisonment. The Deputy District Judge said she took a starting point of 51 months and reduced the jail term of Ho to 22 months, having considered his various mitigating factors, including his full admission of his wrongdoings to ICAC officers after being arrested, his remorse, and his repayment to the client involved in this case.
Co-defendant Lai Suk-fan, 54, former senior purchaser of Parawin Industries Limited (Parawin), was jailed for 17 months. The court took a starting point of 30 months and reduced the jail term of Lai after taking into account her guilty plea and other mitigation factors. The Deputy District Judge also ordered Lai to pay over $710,000, being the amount of the illegal commissions she accepted, as restitution to Parawin.
Ho and Lai earlier pleaded guilty to one count of conspiracy for an agent to accept an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance (POBO) and Section 159A of the Crimes Ordinance. Ho further admitted two counts of conspiracy to offer an advantage to an agent, contrary to Section 9(2)(a) of the POBO and Section 159A of the Crimes Ordinance.
The ICAC calls on members of the industrial and commercial sectors not to resort to bribery in securing businesses. Customs or trade practice is not a defence for offering and accepting illegal rebates.
The court heard that Po Yuen Hong and Parawin were respectively a garment accessories trading company and a nightclothes and swimwear manufacturer. After Ho came to know Lai in 2011, Po Yuen Hong started to receive limited orders from Parawin. In order to maintain a good relationship with Lai and to boost the number of orders from Parawin, Ho had offered numerous admission tickets of an amusement park to her.
In mid-2012, Ho and Lai agreed to offer and accept illegal rebates calculated at the weight of goods ordered by Parawin. Afterwards, purchase orders placed by Parawin increased significantly and Po Yuen Hong became its major supplier.
Between May 2014 and August 2019, Lai received from Ho illegal rebates amounted to over $710,000 which were calculated at a rate ranging from $1 to $2 per kilogramme of goods ordered by Parawin with Po Yuen Hong.
The court heard that Ho and the account clerk of Po Yuen Hong had also deployed a similar corrupt practice to obtain purchase orders of World Easy Garments (HK) Limited (World Easy), a manufacturer of denim clothing. In around February 2012, Ho agreed to offer illegal rebates calculated at 10 per cent of the order sum of purchase orders placed by World Easy to its purchasing clerk.
In addition, the purchasing clerk of World Easy had issued bogus purchase orders to Po Yuen Hong whilst the latter was not required to supply any stock. After receiving payments from World Easy, Po Yuen Hong would retain 20 per cent of the payments and paid the remaining sum to the purchasing clerk.
ICAC investigation revealed that between April 2014 and December 2019, illegal rebates of over $7.7 million were paid to the purchasing clerk of World Easy in relation to purchase orders worth totalling over $36 million.
Parawin and World Easy prohibited their staff from soliciting and accepting advantages from any person in relation to their businesses. The two companies had rendered full assistance to the ICAC during its investigation into the case. The relevant corruption investigation is continuing, the ICAC does not rule out further law enforcement actions.
The above account clerk of Po Yuen Hong also charged for his role in the scam. He earlier pleaded not guilty and had his trial fixed for July next year.
The prosecution was today represented by Senior Assistant Director of Public Prosecutions Winnie Ho, assisted by ICAC officer Gavin Lau.
In sentencing, Deputy District Judge Winnie Lau said bribery was a serious offence warranting a deterrent sentence. The court considered that the culpability of the duo was equal and that it had to tackle relevant bad practices in the industry.
Ho Kwok-wing, 46, sole director-cum-shareholder of Po Yuen Hong Company Limited (Po Yuen Hong) was sentenced to 22 months’ imprisonment. The Deputy District Judge said she took a starting point of 51 months and reduced the jail term of Ho to 22 months, having considered his various mitigating factors, including his full admission of his wrongdoings to ICAC officers after being arrested, his remorse, and his repayment to the client involved in this case.
Co-defendant Lai Suk-fan, 54, former senior purchaser of Parawin Industries Limited (Parawin), was jailed for 17 months. The court took a starting point of 30 months and reduced the jail term of Lai after taking into account her guilty plea and other mitigation factors. The Deputy District Judge also ordered Lai to pay over $710,000, being the amount of the illegal commissions she accepted, as restitution to Parawin.
Ho and Lai earlier pleaded guilty to one count of conspiracy for an agent to accept an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance (POBO) and Section 159A of the Crimes Ordinance. Ho further admitted two counts of conspiracy to offer an advantage to an agent, contrary to Section 9(2)(a) of the POBO and Section 159A of the Crimes Ordinance.
The ICAC calls on members of the industrial and commercial sectors not to resort to bribery in securing businesses. Customs or trade practice is not a defence for offering and accepting illegal rebates.
The court heard that Po Yuen Hong and Parawin were respectively a garment accessories trading company and a nightclothes and swimwear manufacturer. After Ho came to know Lai in 2011, Po Yuen Hong started to receive limited orders from Parawin. In order to maintain a good relationship with Lai and to boost the number of orders from Parawin, Ho had offered numerous admission tickets of an amusement park to her.
In mid-2012, Ho and Lai agreed to offer and accept illegal rebates calculated at the weight of goods ordered by Parawin. Afterwards, purchase orders placed by Parawin increased significantly and Po Yuen Hong became its major supplier.
Between May 2014 and August 2019, Lai received from Ho illegal rebates amounted to over $710,000 which were calculated at a rate ranging from $1 to $2 per kilogramme of goods ordered by Parawin with Po Yuen Hong.
The court heard that Ho and the account clerk of Po Yuen Hong had also deployed a similar corrupt practice to obtain purchase orders of World Easy Garments (HK) Limited (World Easy), a manufacturer of denim clothing. In around February 2012, Ho agreed to offer illegal rebates calculated at 10 per cent of the order sum of purchase orders placed by World Easy to its purchasing clerk.
In addition, the purchasing clerk of World Easy had issued bogus purchase orders to Po Yuen Hong whilst the latter was not required to supply any stock. After receiving payments from World Easy, Po Yuen Hong would retain 20 per cent of the payments and paid the remaining sum to the purchasing clerk.
ICAC investigation revealed that between April 2014 and December 2019, illegal rebates of over $7.7 million were paid to the purchasing clerk of World Easy in relation to purchase orders worth totalling over $36 million.
Parawin and World Easy prohibited their staff from soliciting and accepting advantages from any person in relation to their businesses. The two companies had rendered full assistance to the ICAC during its investigation into the case. The relevant corruption investigation is continuing, the ICAC does not rule out further law enforcement actions.
The above account clerk of Po Yuen Hong also charged for his role in the scam. He earlier pleaded not guilty and had his trial fixed for July next year.
The prosecution was today represented by Senior Assistant Director of Public Prosecutions Winnie Ho, assisted by ICAC officer Gavin Lau.