ICAC arrests 26 for alleged corrupt practices at public auctions
2002-3-8
The ICAC has arrested 26 persons, mostly second-hand goods dealers, for alleged corrupt practices at government auctions.
The arrestees, netted in an operation codenamed " Balloon Guitar ", which commenced yesterday, included an employee of a private auction company, who is alleged to have received a bribe to disclose confidential tender information.
The remaining arrestees are involved in second-hand goods trading.
The ICAC investigation originated from a complaint, alleging that corrupt practices might have occurred at public auctions held by an auctioneer contracted by the Government Supplies Department to dispose of second-hand or confiscated goods of the Governm ent.
ICAC enquiries revealed that at least two syndicates were allegedly involved in rigging public auctions.
The syndicates had allegedly agreed not to compete against each other in respect of selected items listed.
When the goods were successfully bidded by any of the syndicates, they were then put for sale at subsequent “private” auctions and the profits were shared amongst syndicate members.
Under Section 7 of the Prevention of Bribery Ordinance, any person who offers any advantage to others for refraining from bidding at a public auction is liable to an offence. Anyone who solicits or accepts an advantage for the same reason may also violat e the law.
All the arrestees have been released on ICAC bail. Enquiries are continuing.
Any person having information concerning similar practices at public auctions is requested to contact the ICAC Report Centre at 2526 6366.
The arrestees, netted in an operation codenamed " Balloon Guitar ", which commenced yesterday, included an employee of a private auction company, who is alleged to have received a bribe to disclose confidential tender information.
The remaining arrestees are involved in second-hand goods trading.
The ICAC investigation originated from a complaint, alleging that corrupt practices might have occurred at public auctions held by an auctioneer contracted by the Government Supplies Department to dispose of second-hand or confiscated goods of the Governm ent.
ICAC enquiries revealed that at least two syndicates were allegedly involved in rigging public auctions.
The syndicates had allegedly agreed not to compete against each other in respect of selected items listed.
When the goods were successfully bidded by any of the syndicates, they were then put for sale at subsequent “private” auctions and the profits were shared amongst syndicate members.
Under Section 7 of the Prevention of Bribery Ordinance, any person who offers any advantage to others for refraining from bidding at a public auction is liable to an offence. Anyone who solicits or accepts an advantage for the same reason may also violat e the law.
All the arrestees have been released on ICAC bail. Enquiries are continuing.
Any person having information concerning similar practices at public auctions is requested to contact the ICAC Report Centre at 2526 6366.