Ex-chairman of listed company gets three years for m bribery over acquisition
2015-9-25
A former chairman of a listed company, charged by the ICAC, was today (Friday) sentenced to three years’ imprisonment at the District Court after being convicted of accepting a bribe of million for procuring the listed company to acquire an investment company at a consideration of $380 million.
Chen Jiasong, 60, former chairman of ABC Communications (Holdings) Limited (ABC), was today found guilty of one count of agent accepting an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance.
Judge Fred Sham Siu-man also ordered the defendant to pay a restitution of million to ABC, and be disqualified from being a company director for five years.
The court heard that at the material time, the defendant was the deputy chairman of ABC, a listed company providing financial services, wireless application development and mining operations, while Chen Xirong was the owner of Gold Vast Holdings Limited (Gold Vast).
On October 5, 2009, the defendant recommended the board of directors of ABC to acquire all shares of Gold Vast from Chen Xirong.
After obtaining approval from ABC’s board of directors, the defendant represented Global Force Holding Limited (Global Force), a wholly owned subsidiary of ABC, to sign a framework agreement for the acquisition of Gold Vast at a consideration not exceeding ,300 million.
On October 12, 2009, the defendant, on behalf of ABC and Global Force, signed an agreement with Chen Xirong for the acquisition of Gold Vast at a consideration of $380 million, the court was told.
On October 28, 2009, the defendant and Chen Xirong entered Hong Kong from Shenzhen by a vehicle driven by the defendant’s chauffeur. Afterwards, Chen Xirong visited the Sheung Wan branch of a bank and withdrew million cash from his bank account.
In the same afternoon, the defendant’s chauffeur deposited the million cash into the defendant’s bank account at the Shun Tak Centre branch of the same bank.
On the same day, the defendant and Chen Xirong left Hong Kong for Shenzhen by the same vehicle driven by the defendant’s chauffeur, the court heard.
On January 10, 2011, the acquisition of Gold Vast was terminated.
The management of ABC had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Newman Wong, assisted by ICAC officers Matthew Chang and Eric Ho.
Chen Jiasong, 60, former chairman of ABC Communications (Holdings) Limited (ABC), was today found guilty of one count of agent accepting an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance.
Judge Fred Sham Siu-man also ordered the defendant to pay a restitution of million to ABC, and be disqualified from being a company director for five years.
The court heard that at the material time, the defendant was the deputy chairman of ABC, a listed company providing financial services, wireless application development and mining operations, while Chen Xirong was the owner of Gold Vast Holdings Limited (Gold Vast).
On October 5, 2009, the defendant recommended the board of directors of ABC to acquire all shares of Gold Vast from Chen Xirong.
After obtaining approval from ABC’s board of directors, the defendant represented Global Force Holding Limited (Global Force), a wholly owned subsidiary of ABC, to sign a framework agreement for the acquisition of Gold Vast at a consideration not exceeding ,300 million.
On October 12, 2009, the defendant, on behalf of ABC and Global Force, signed an agreement with Chen Xirong for the acquisition of Gold Vast at a consideration of $380 million, the court was told.
On October 28, 2009, the defendant and Chen Xirong entered Hong Kong from Shenzhen by a vehicle driven by the defendant’s chauffeur. Afterwards, Chen Xirong visited the Sheung Wan branch of a bank and withdrew million cash from his bank account.
In the same afternoon, the defendant’s chauffeur deposited the million cash into the defendant’s bank account at the Shun Tak Centre branch of the same bank.
On the same day, the defendant and Chen Xirong left Hong Kong for Shenzhen by the same vehicle driven by the defendant’s chauffeur, the court heard.
On January 10, 2011, the acquisition of Gold Vast was terminated.
The management of ABC had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Newman Wong, assisted by ICAC officers Matthew Chang and Eric Ho.