Secondary school teacher charged by ICAC for allegedly concealing conflict of interest in workshop
2023-3-20
A secondary school teacher was charged by the ICAC today (March 20) for allegedly deceiving the school into engaging a service provider to host a workshop for students by concealing that he was the major shareholder of the service provider.
Lau Tat-li, 32, former teacher of ELCHK Lutheran Academy (Lutheran Academy), faces one count of fraud, contrary to Section 16A(1) of the Theft Ordinance. He was released on ICAC bail, pending his appearance in the Tuen Mun Magistrates’ Courts on Wednesday (March 22) for plea.
At the material time, the defendant was a teacher of design subject of Lutheran Academy, a direct subsidy scheme secondary school. Guidelines of Lutheran Academy provided that staff involved in procurement and supplies duties would declare in writing to the Incorporated Management Committee (IMC) of the school any connection they or their families have with any suppliers or contractors as soon as possible.
In April 2021, the defendant was assigned to host a robot workshop during the extra curriculum activities week in June 2021. In mid-May, he informed the school that he wanted to host a “Design – Toys and figures maker workshop” instead. He subsequently submitted the quotations of two service providers to the school and recommended to engage Wonder Hobbys. Limited (Wonder Hobbys) at $50,000 to host the workshop for 25 students as its quotation was $2,000 lower than that of its competitor.
The procurement was approved by Lutheran Academy and Wonder Hobbys eventually charged the school $48,000 for hosting the workshop attended by 24 students.
It is alleged that between May 18 and June 24, 2021, the defendant concealed from the IMC of Lutheran Academy that he was a director-cum-shareholder of Wonder Hobbys, and with intent to defraud, induced the school to engage Wonder Hobbys as the service provider of the abovementioned workshop.
The ICAC investigation arose from a corruption complaint. Enquiries revealed that at the material time, the defendant was a director-cum-shareholder of Wonder Hobbys holding 70 per cent of its shares. But the defendant had never disclosed his interest in Wonder Hobbys to the school.
The ICAC reminds school authorities to establish clear guidelines and systems of declaration on conflict of interest, while school personnel should avoid conflict of interest situations and to make timely declarations in strict adherence to internal guidelines of individual schools. Concealing any conflict of interest in relation to one’s official duties to benefit himself or his associates may contravene the criminal law. It may constitute a breach of the Prevention of Bribery Ordinance if offering and accepting of bribes are involved.
Meanwhile, school authorities should ensure that procurements are conducted in a transparent and competitive manner, and require staff involved in the procurement process to declare their actual or potential conflict of interest. The Best Practice Checklist for Governance and Internal Control in Schools (cpas.icac.hk/EN/Info/Lib_List?cate_id=3&id=238) published by the ICAC provides recommended measures for reference by school management.
Lutheran Academy has rendered full assistance to the ICAC during its investigation into the case.
Lau Tat-li, 32, former teacher of ELCHK Lutheran Academy (Lutheran Academy), faces one count of fraud, contrary to Section 16A(1) of the Theft Ordinance. He was released on ICAC bail, pending his appearance in the Tuen Mun Magistrates’ Courts on Wednesday (March 22) for plea.
At the material time, the defendant was a teacher of design subject of Lutheran Academy, a direct subsidy scheme secondary school. Guidelines of Lutheran Academy provided that staff involved in procurement and supplies duties would declare in writing to the Incorporated Management Committee (IMC) of the school any connection they or their families have with any suppliers or contractors as soon as possible.
In April 2021, the defendant was assigned to host a robot workshop during the extra curriculum activities week in June 2021. In mid-May, he informed the school that he wanted to host a “Design – Toys and figures maker workshop” instead. He subsequently submitted the quotations of two service providers to the school and recommended to engage Wonder Hobbys. Limited (Wonder Hobbys) at $50,000 to host the workshop for 25 students as its quotation was $2,000 lower than that of its competitor.
The procurement was approved by Lutheran Academy and Wonder Hobbys eventually charged the school $48,000 for hosting the workshop attended by 24 students.
It is alleged that between May 18 and June 24, 2021, the defendant concealed from the IMC of Lutheran Academy that he was a director-cum-shareholder of Wonder Hobbys, and with intent to defraud, induced the school to engage Wonder Hobbys as the service provider of the abovementioned workshop.
The ICAC investigation arose from a corruption complaint. Enquiries revealed that at the material time, the defendant was a director-cum-shareholder of Wonder Hobbys holding 70 per cent of its shares. But the defendant had never disclosed his interest in Wonder Hobbys to the school.
The ICAC reminds school authorities to establish clear guidelines and systems of declaration on conflict of interest, while school personnel should avoid conflict of interest situations and to make timely declarations in strict adherence to internal guidelines of individual schools. Concealing any conflict of interest in relation to one’s official duties to benefit himself or his associates may contravene the criminal law. It may constitute a breach of the Prevention of Bribery Ordinance if offering and accepting of bribes are involved.
Meanwhile, school authorities should ensure that procurements are conducted in a transparent and competitive manner, and require staff involved in the procurement process to declare their actual or potential conflict of interest. The Best Practice Checklist for Governance and Internal Control in Schools (cpas.icac.hk/EN/Info/Lib_List?cate_id=3&id=238) published by the ICAC provides recommended measures for reference by school management.
Lutheran Academy has rendered full assistance to the ICAC during its investigation into the case.