Trio wanted by ICAC for alleged US$900,000 bribery over toy orders of multinational retailer
2023-2-10
A Magistrate issued warrants for the arrest of two former buying managers of a multinational groceries retailer and the operator of a toy supplier, who are wanted by the ICAC for allegedly accepting and offering bribes totalling over US$900,000 (over HK$7 million) for causing the retailer to place toy orders worth totalling over US$26 million (over HK$205 million) with the toy supplier.
Zsolt Gergely Kovacs, 46 and Ladislav Gajdos, 43, respectively former senior buying manager and former buying manager of Tesco Stores Limited (Tesco Stores), jointly face one count of conspiracy for an agent to accept advantages, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance (POBO) and Section 159A of the Crimes Ordinance.
Chen Jinqun, 57, operator of Handwin Toys Industrial Co., Limited (Handwin), faces three charges – one of conspiracy to offer advantages to an agent and two of offering an advantage to an agent, contrary to Section 9(2)(a) of the POBO and Section 159A of the Crimes Ordinance.
The alleged offences took place between June 2010 and January 2020. At the material time, Kovacs and Gajdos were working in the buying team of Tesco Stores in the United Kingdom. Tesco Stores and Tesco International Sourcing Limited (Tesco Sourcing) in Hong Kong were both subsidiaries of multinational groceries retailer Tesco PLC. Kovacs and Gajdos were responsible for selecting toy and groceries suppliers for Tesco PLC based on the recommendations made by the sourcing team of Tesco Sourcing. Handwin was one of the toy suppliers.
It is alleged that in 2011, Kovacs suggested to Pang Chun-kin, then sourcing manager of Tesco Sourcing, to solicit rebates from Chen, who was the operator of Handwin. Gajdos was alleged to have participated in the corrupt dealings since around mid-2012.
The charge against Kovacs and Gajdos alleges that the duo conspired with Pang for the trio to, without lawful authority or reasonable excuse, receive illegal rebates totalling over US$708,000 (over HK$5.5 million) from Chen for causing Tesco Sourcing to place orders with Handwin.
Meanwhile, Chen has allegedly conspired with Kovacs, Gajdos and Pang to offer the above illegal rebates to the trio, and Chen has allegedly offered two loans totalling US$200,000 (about HK$1.56 million) to Pang for the same purpose.
ICAC investigation revealed that Tesco Sourcing had placed toy orders worth totalling over US$26 million (over HK$205 million) with Handwin between March 2011 and January 2018.
Legal advice received from the Department of Justice earlier advises charging Kovacs, Gajdos and Chen. As the trio are not in Hong Kong, warrants for the arrest of them were issued by a Magistrate on Monday (February 6) upon the application made by the ICAC.
Pang was earlier charged by the ICAC with bribery. He was sentenced to three years’ imprisonment at the District Court in July 2021 following his guilty plea.
Tesco PLC, Tesco Stores and Tesco Sourcing have rendered full assistance to the ICAC during its investigation into the case.
Zsolt Gergely Kovacs, 46 and Ladislav Gajdos, 43, respectively former senior buying manager and former buying manager of Tesco Stores Limited (Tesco Stores), jointly face one count of conspiracy for an agent to accept advantages, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance (POBO) and Section 159A of the Crimes Ordinance.
Chen Jinqun, 57, operator of Handwin Toys Industrial Co., Limited (Handwin), faces three charges – one of conspiracy to offer advantages to an agent and two of offering an advantage to an agent, contrary to Section 9(2)(a) of the POBO and Section 159A of the Crimes Ordinance.
The alleged offences took place between June 2010 and January 2020. At the material time, Kovacs and Gajdos were working in the buying team of Tesco Stores in the United Kingdom. Tesco Stores and Tesco International Sourcing Limited (Tesco Sourcing) in Hong Kong were both subsidiaries of multinational groceries retailer Tesco PLC. Kovacs and Gajdos were responsible for selecting toy and groceries suppliers for Tesco PLC based on the recommendations made by the sourcing team of Tesco Sourcing. Handwin was one of the toy suppliers.
It is alleged that in 2011, Kovacs suggested to Pang Chun-kin, then sourcing manager of Tesco Sourcing, to solicit rebates from Chen, who was the operator of Handwin. Gajdos was alleged to have participated in the corrupt dealings since around mid-2012.
The charge against Kovacs and Gajdos alleges that the duo conspired with Pang for the trio to, without lawful authority or reasonable excuse, receive illegal rebates totalling over US$708,000 (over HK$5.5 million) from Chen for causing Tesco Sourcing to place orders with Handwin.
Meanwhile, Chen has allegedly conspired with Kovacs, Gajdos and Pang to offer the above illegal rebates to the trio, and Chen has allegedly offered two loans totalling US$200,000 (about HK$1.56 million) to Pang for the same purpose.
ICAC investigation revealed that Tesco Sourcing had placed toy orders worth totalling over US$26 million (over HK$205 million) with Handwin between March 2011 and January 2018.
Legal advice received from the Department of Justice earlier advises charging Kovacs, Gajdos and Chen. As the trio are not in Hong Kong, warrants for the arrest of them were issued by a Magistrate on Monday (February 6) upon the application made by the ICAC.
Pang was earlier charged by the ICAC with bribery. He was sentenced to three years’ imprisonment at the District Court in July 2021 following his guilty plea.
Tesco PLC, Tesco Stores and Tesco Sourcing have rendered full assistance to the ICAC during its investigation into the case.