Ex-employee of fast food restaurant chain charged by ICAC admits concealing conflict of interest in works contractor
2023-4-20
A former assistant engineer of a fast food restaurant chain, charged by the ICAC, today (April 20) admitted at the Fanling Magistrates’ Courts that he had deceived the restaurant chain into awarding two works projects to a contractor by concealing that he was the latter’s major shareholder.
Chan Yiu-wa, 53, former assistant engineer of Café de Coral Group Limited (Café de Coral Group), pleaded guilty to two counts of fraud, contrary to Section 16A of the Theft Ordinance.
Acting Principal Magistrate Mr Colin Wong Sze-cheung adjourned the case to May 3 for sentence, pending the defendant’s background and community service order reports. The defendant was granted bail.
The court heard that the defendant was Café de Coral Group’s assistant engineer between February and early December 2021. Among other duties, he was responsible for sourcing quotations from contractors for engineering and maintenance works for a plant of Café de Coral Holdings Limited (Café de Coral Holdings) – the parent company of Café de Coral Group.
As set out in the employee handbook of Café de Coral Holdings, employees of Café de Coral Holdings and its subsidiaries should avoid any conflict of interest. An employee must declare to Café de Coral Holdings if he or she has any interest in an organisation which has business dealings with Café de Coral Holdings and its subsidiaries.
Between March and September 2021, the defendant was assigned to source quotations from contractors for two works projects – a replacement work of a security booth and a maintenance work of an air-conditioning system for the abovementioned plant.
The defendant submitted three quotations for each of the projects and recommended Café de Coral Holdings to award the project to Leading Gain Engineering Co. Limited (Leading Gain) on both occasions. The two works projects, involving payments totalling about $70,000, were eventually awarded to Leading Gain.
The ICAC investigation arose from a corruption complaint. Enquiries revealed that the defendant was the sole director and major shareholder of Leading Gain at the material time. However, the defendant had never made any declaration to Café de Coral Holdings over the issue. Had Café de Coral Holdings known of the directorship and shareholding of the defendant in Leading Gain, it would not have engaged Leading Gain to carry out the two works projects.
Café de Coral Holdings had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by ICAC officer William Leung.
The ICAC reminds employees to avoid conflict of interest situations and to make timely declarations to their employers. Concealing any conflict of interest in relation to one’s official duties to benefit himself or his associates may contravene the Prevention of Bribery Ordinance and other criminal law.
The ICAC recommends companies to establish clear guidelines and declaration systems of conflict of interest with which employees should strictly comply. “How to handle conflict of interest”: hkbedc.icac.hk/en/integrity_focus/how_to_handle_conflict_of_interest.
Chan Yiu-wa, 53, former assistant engineer of Café de Coral Group Limited (Café de Coral Group), pleaded guilty to two counts of fraud, contrary to Section 16A of the Theft Ordinance.
Acting Principal Magistrate Mr Colin Wong Sze-cheung adjourned the case to May 3 for sentence, pending the defendant’s background and community service order reports. The defendant was granted bail.
The court heard that the defendant was Café de Coral Group’s assistant engineer between February and early December 2021. Among other duties, he was responsible for sourcing quotations from contractors for engineering and maintenance works for a plant of Café de Coral Holdings Limited (Café de Coral Holdings) – the parent company of Café de Coral Group.
As set out in the employee handbook of Café de Coral Holdings, employees of Café de Coral Holdings and its subsidiaries should avoid any conflict of interest. An employee must declare to Café de Coral Holdings if he or she has any interest in an organisation which has business dealings with Café de Coral Holdings and its subsidiaries.
Between March and September 2021, the defendant was assigned to source quotations from contractors for two works projects – a replacement work of a security booth and a maintenance work of an air-conditioning system for the abovementioned plant.
The defendant submitted three quotations for each of the projects and recommended Café de Coral Holdings to award the project to Leading Gain Engineering Co. Limited (Leading Gain) on both occasions. The two works projects, involving payments totalling about $70,000, were eventually awarded to Leading Gain.
The ICAC investigation arose from a corruption complaint. Enquiries revealed that the defendant was the sole director and major shareholder of Leading Gain at the material time. However, the defendant had never made any declaration to Café de Coral Holdings over the issue. Had Café de Coral Holdings known of the directorship and shareholding of the defendant in Leading Gain, it would not have engaged Leading Gain to carry out the two works projects.
Café de Coral Holdings had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by ICAC officer William Leung.
The ICAC reminds employees to avoid conflict of interest situations and to make timely declarations to their employers. Concealing any conflict of interest in relation to one’s official duties to benefit himself or his associates may contravene the Prevention of Bribery Ordinance and other criminal law.
The ICAC recommends companies to establish clear guidelines and declaration systems of conflict of interest with which employees should strictly comply. “How to handle conflict of interest”: hkbedc.icac.hk/en/integrity_focus/how_to_handle_conflict_of_interest.