Subcontractor inflates delivery fees, sweetens logistics company manager with bribes for HK$1.7m orders charged by ICAC
2022-11-15
A logistics subcontractor was charged by the ICAC today (November 15) for allegedly inflating delivery fees and returning the differences as “sweetener” to bribe a manager of a logistics company for maintaining a good relationship and for the latter showing favour to the subcontractor in outsourcing various delivery orders worth totalling about HK$1.7 million.
Liu Kwun-ming, 54, sole director cum shareholder of Fung Wing Logistics Co., Limited (Fung Wing), faces one count of conspiracy for an agent to accept advantages, contrary to Section 9(1)(b) of the Prevention of Bribery Ordinance and Section 159A of the Crimes Ordinance. He further faces an alternative charge of conspiracy to defraud, contrary to Common Law.
The defendant was released on ICAC bail, pending his appearance in the West Kowloon Magistrates’ Courts on Thursday (November 17) for plea.
Since May 2018, Fung Wing had been a subcontractor of Eas Da Tong International Trucking Company (Eas Da Tong) which provided cross-border logistics services to clients of its mother company – Kerry Logistics Network Limited (Kerry Logistics). A manager of another subsidiary of Kerry Logistics was responsible for outsourcing delivery orders to subcontractors.
It is alleged that between June 2018 and May 2021, the defendant conspired together with a business partner of him in Fung Wing and the above manager for the manager to accept illegal rebates totalling over Renminbi 120,000 for showing favour to Fung Wing.
The alternative charge alleges that during the above period, the defendant conspired together with his business partner and the manager to defraud Eas Da Tong by falsely representing that the haulage charges shown on Fung Wing’s payment reports were accurate, and thus inducing Eas Da Tong to release payments to Fung Wing.
During the above period, Eas Da Tong had placed delivery orders worth totalling about HK$1.7 million with Fung Wing.
The ICAC investigation arose from a corruption complaint. Enquiries revealed that the defendant had allegedly conspired together with the abovementioned persons to inflate the haulage charges on Fung Wing’s payment reports and returned the price differences totalling over Renminbi 120,000 to the manager.
Kerry Logistics has rendered full assistance to the ICAC during its investigation into this case.
Liu Kwun-ming, 54, sole director cum shareholder of Fung Wing Logistics Co., Limited (Fung Wing), faces one count of conspiracy for an agent to accept advantages, contrary to Section 9(1)(b) of the Prevention of Bribery Ordinance and Section 159A of the Crimes Ordinance. He further faces an alternative charge of conspiracy to defraud, contrary to Common Law.
The defendant was released on ICAC bail, pending his appearance in the West Kowloon Magistrates’ Courts on Thursday (November 17) for plea.
Since May 2018, Fung Wing had been a subcontractor of Eas Da Tong International Trucking Company (Eas Da Tong) which provided cross-border logistics services to clients of its mother company – Kerry Logistics Network Limited (Kerry Logistics). A manager of another subsidiary of Kerry Logistics was responsible for outsourcing delivery orders to subcontractors.
It is alleged that between June 2018 and May 2021, the defendant conspired together with a business partner of him in Fung Wing and the above manager for the manager to accept illegal rebates totalling over Renminbi 120,000 for showing favour to Fung Wing.
The alternative charge alleges that during the above period, the defendant conspired together with his business partner and the manager to defraud Eas Da Tong by falsely representing that the haulage charges shown on Fung Wing’s payment reports were accurate, and thus inducing Eas Da Tong to release payments to Fung Wing.
During the above period, Eas Da Tong had placed delivery orders worth totalling about HK$1.7 million with Fung Wing.
The ICAC investigation arose from a corruption complaint. Enquiries revealed that the defendant had allegedly conspired together with the abovementioned persons to inflate the haulage charges on Fung Wing’s payment reports and returned the price differences totalling over Renminbi 120,000 to the manager.
Kerry Logistics has rendered full assistance to the ICAC during its investigation into this case.