Eleven serving and former KCRC staff netted in Octopus Card alleged scam
2000-5-12
Ten serving and one former employees of the Kowloon-Canton Railway Corporation (KCRC) were arrested by the ICAC for allegedly embezzling about $400,000 generated from add-value transactions for Octopus Smart Cards (Octopus Cards) and the sale of railway tickets.
They were arrested in a two-day ICAC operation codenamed “Uranus” which commenced on Tuesday.
The arrestees, including 10 serving and one former Station Officers attached to Kowloon Tong Railway Station (the Station), were suspected to have tampered with the KCRC computer system to facilitate the theft.
The case was referred to the ICAC by the KCRC management who initially suspected that corruption might be involved in facilitating the embezzlement.
A data analysis conducted by KCRC revealed that between May and August in 1999, the records of some Octopus add-value transactions were missing, causing $370,000 losses in revenue during the period. It is estimated an additional $30,000 were stolen from illicit selling of railway tickets.
Subsequent enquiries by the ICAC revealed that some station staff, while handling the add-value transactions for customers ' Octopus Cards, had manipulated the operation of computer terminals installed at the Kowloon Tong Railway Station to facilitate the theft.
Investigations found that though the computers were illegally tampered, value was properly added to customers' Octopus Cards, thus causing no loss to the customers.
It was also revealed that some of the arrested were alleged to have improperly conducted computer operation to validate “void” railway tickets which they had stolen. They had allegedly sold the re-validated tickets to customers and pocketed the proceeds.
It is believed that some of the staff involved had been using these means to steal money from KCRC since 1998.
An ICAC spokesman said the Corruption Prevention Department (CPD) and KCRC had discussed ways to plug corruption loopholes in relation to the sale of railway tickets and the management of Octopus card transactions.
“ The CPD and KCRC will now work on actual measures to improve the system as the investigation has turned overt, ” the spokesman said.
Ten of the arrestees were released on ICAC bail, pending further enquiries, while the remaining one (a serving KCRC employee) was released as investigations revealed that he had no criminal involvement in the case.
They were arrested in a two-day ICAC operation codenamed “Uranus” which commenced on Tuesday.
The arrestees, including 10 serving and one former Station Officers attached to Kowloon Tong Railway Station (the Station), were suspected to have tampered with the KCRC computer system to facilitate the theft.
The case was referred to the ICAC by the KCRC management who initially suspected that corruption might be involved in facilitating the embezzlement.
A data analysis conducted by KCRC revealed that between May and August in 1999, the records of some Octopus add-value transactions were missing, causing $370,000 losses in revenue during the period. It is estimated an additional $30,000 were stolen from illicit selling of railway tickets.
Subsequent enquiries by the ICAC revealed that some station staff, while handling the add-value transactions for customers ' Octopus Cards, had manipulated the operation of computer terminals installed at the Kowloon Tong Railway Station to facilitate the theft.
Investigations found that though the computers were illegally tampered, value was properly added to customers' Octopus Cards, thus causing no loss to the customers.
It was also revealed that some of the arrested were alleged to have improperly conducted computer operation to validate “void” railway tickets which they had stolen. They had allegedly sold the re-validated tickets to customers and pocketed the proceeds.
It is believed that some of the staff involved had been using these means to steal money from KCRC since 1998.
An ICAC spokesman said the Corruption Prevention Department (CPD) and KCRC had discussed ways to plug corruption loopholes in relation to the sale of railway tickets and the management of Octopus card transactions.
“ The CPD and KCRC will now work on actual measures to improve the system as the investigation has turned overt, ” the spokesman said.
Ten of the arrestees were released on ICAC bail, pending further enquiries, while the remaining one (a serving KCRC employee) was released as investigations revealed that he had no criminal involvement in the case.