Supplier and six others arrested for alleged counterfeit floor tiles scam
2001-11-23
The ICAC has arrested a tiles supplier for alleged corruption and fraud over the provision of ceramic floor tiles and counterfeit concrete pavers for the renovation works at a Housing Department (HD) shopping arcade in Tseung Kwan O and a secondary school .
It was alleged that the supplier had deceived about $350,000 out of the relevant contracts with substitutes or counterfeit products.
Also netted in Operation " Skylight " were a salesman and two former employees of the tiles supplier, a director of another tiles company, and two directors of a construction contractor and subcontractor.
The ICAC investigation arose from a corruption complaint alleging that some HD employees might have assisted in covering up the use of counterfeit products.
Investigations revealed that the tiles supplier, believed to have masterminded the alleged scam, was contracted to supply ceramic floor tiles and pavers for the respective renovation works at the HD shopping arcade and the secondary school.
In the shopping arcade project, he was alleged to have conspired with some employees of the contractor and subcontractor to substitute the Italian floor tiles specified by HD with those from another manufacturer.
They were also alleged to have forged shipping documents and a letter of origin to cover up the scheme.
In the secondary school renovation project, according to the prescribed specification, concrete block pavers from a UK manufacturer were to be used for the carpark.
The supplier had allegedly recommended to the project's architectural consultant a different material, claiming that it was also made in the UK.
It was believed that a job reference list and other documents submitted to support the recommendation were forged.
Inquiries revealed that the pavers were in fact manufactured in the Mainland, with a purported UK brand engraved on them.
The arrestees have been released on ICAC bail. Inquiries are continuing.
It was alleged that the supplier had deceived about $350,000 out of the relevant contracts with substitutes or counterfeit products.
Also netted in Operation " Skylight " were a salesman and two former employees of the tiles supplier, a director of another tiles company, and two directors of a construction contractor and subcontractor.
The ICAC investigation arose from a corruption complaint alleging that some HD employees might have assisted in covering up the use of counterfeit products.
Investigations revealed that the tiles supplier, believed to have masterminded the alleged scam, was contracted to supply ceramic floor tiles and pavers for the respective renovation works at the HD shopping arcade and the secondary school.
In the shopping arcade project, he was alleged to have conspired with some employees of the contractor and subcontractor to substitute the Italian floor tiles specified by HD with those from another manufacturer.
They were also alleged to have forged shipping documents and a letter of origin to cover up the scheme.
In the secondary school renovation project, according to the prescribed specification, concrete block pavers from a UK manufacturer were to be used for the carpark.
The supplier had allegedly recommended to the project's architectural consultant a different material, claiming that it was also made in the UK.
It was believed that a job reference list and other documents submitted to support the recommendation were forged.
Inquiries revealed that the pavers were in fact manufactured in the Mainland, with a purported UK brand engraved on them.
The arrestees have been released on ICAC bail. Inquiries are continuing.