ICAC launches comprehensive services for building management and banking sectors

2001-2-23

The Independent Commission Against Corruption (ICAC) will this year step up anti-corruption services for the building management and banking sectors through its recently-established inter-departmental task forces.

Highlighting the ICAC's new initiatives at the annual media briefing today (Friday), Commissioner Alan Lai Nin said a task force comprising representatives from the Operations Department, Corruption Prevention Department and the Community Relations Depart ment was recently set up to provide comprehensive corruption prevention services for the building management sector.

With the aging of multi-storey buildings, corruption reports related to building management almost doubled since 1997, he said.

The number of reports jumped 31 per cent from 544 in 1999 to 715 last year, accounting for about 30 per cent of all private sector reports. Of last year's figure, 68 per cent were classified as “simple complaints” that were capable of quick resolution. Prosecution rate for these cases was also low.

On close examination of these reports, the ICAC found that many arose from misunderstanding or lack of knowledge of anti-bribery law or did not contain any corruption element, Mr Lai said.

He said, apart from assisting industry practitioners to draw up code of conduct and guidelines, the building management task force would also, in collaboration with the Home Affairs Department (HAD) launch a territory-wide programme to raise public awaren ess on corruption prevention issues.

Training sessions on anti-corruption law would be arranged for HAD staff responsible for overseeing building management matters.

For the banking sector, the ICAC would continue to work closely with industry practitioners to strengthen ethical standards and internal control, Mr Lai said.

Corruption reports concerning the banking sector had levelled off last year, but it was essential to sustain efforts to promote higher standard of integrity in light of the importance of the banking sector in the local economy, he added.

The banking task force would liaise with industry practitioners with a view to establishing a corruption prevention network amongst compliance officers or internal auditors of banks.

Together with banking regulators and trade bodies, the task force would launch a practical anti-corruption guide for senior managers next month. On-line training on anti-corruption law for frontline staff would also be considered.

Mr Lai recalled that the construction task force formed last year had provided corruption prevention advice to and promoted integrity amongst relevant government departments and industry practitioners.

The Housing Authority had already adopted one of the major recommendations put forward by the ICAC, which was to require all of its 200-plus pre-approved contractors to formulate codes of conduct before April.

Mr Lai hoped that all these corruption prevention works would help improve the situation in the industry.

Reviewing the corruption situation last year, Mr Lai said total corruption reports stood at 4,390, up 23 per cent over 1999.

The rise was mainly attributable to the residual impact of the Asian financial turmoil, the effect of extensive media coverage of ICAC investigations and a substantial increase in simple complaints, he added.

Among the reports, 1,732 were against government departments, 2,402 against the private sector and 256 against public bodies, accounting for 40 per cent, 54 per cent and six per cent of total corruption reports respectively.

Reports classified as simple complaints increased by 68 per cent from 713 in 1999 to 1,195 last year, some of which were speculative in nature.

Mr Lai assured that there was no sign of a resurgence of syndicated corruption within the civil service, adding that the corruption cases the ICAC encountered in recent years were isolated incidents in which individuals were unable to resist temptations.

Under the two-year Civil Service Integrity Programme, the ICAC visited the senior management of all 67 government departments and arranged talks for more than 32,000 civil servants, he said. Twenty-seven departments had either issued or were revising cod es or guidelines on staff conduct.

Mr Lai said although the number of civil servants referred to the Civil Service Bureau (CSB) for disciplinary and administrative actions showed an increase on a year-on-year basis, there was a noticeable fall in many categories of misconduct.

With the two-year integrity programme coming to a close next month, the ICAC would discuss with CSB on ways to follow up on the new guidelines, he said.

Mr Lai said non-anonymous reports accounted for about 70 per cent of all reports in recent years. The Commission would step up promotional and educational efforts to encourage more people to make known their identities while lodging a complaint, which wo uld greatly facilitate follow-up investigations, he said.
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