TELA officers arrested for alleged bribery over $1.76 m printing contracts
2002-3-27
An Acting Chief Executive Officer (CEO) and an Executive Officer (EO) of the Television and Entertainment Licensing Authority (TELA) were arrested by the ICAC yesterday (Tuesday) for alleged corruption and abuse of authority in awarding TELA's printing an d production contracts worth about $1.76 million in total.
Also arrested in Operation " Everest" was the CEO's wife, who is the director of a company which provides printing service and souvenir production.
The ICAC earlier received a corruption complaint alleging that some TELA staff might have accepted advantages from suppliers in return for awarding printing contracts to them.
Investigation revealed that the Acting CEO had allegedly, on a number of occasions, suggested that his subordinates, including the EO, approach his wife's company for quotations for printing services and the supply of souvenirs, without disclosing his int erest in the company.
To ensure his wife's company could secure the contracts, the Acting CEO allegedly permitted the use of bogus quotations purported to be submitted by other suppliers, which were all offered at higher prices.
It is believed that between January 1998 and May 2001, the company operated by the Acting CEO's wife had allegedly obtained 32 TELA contracts, worth $790,000 in total, under this fraudulent scheme.
Enquiries also revealed that fictitious quotations were also used in relation to 16 other TELA contracts, worth $970,000 in total, to facilitate the awarding of contracts to a number of designated suppliers.
One of the contracts was allegedly awarded to a company associated with a close friend of the Acting CEO.
The arrestees have been released on ICAC bail, pending further inquiries.
Also arrested in Operation " Everest" was the CEO's wife, who is the director of a company which provides printing service and souvenir production.
The ICAC earlier received a corruption complaint alleging that some TELA staff might have accepted advantages from suppliers in return for awarding printing contracts to them.
Investigation revealed that the Acting CEO had allegedly, on a number of occasions, suggested that his subordinates, including the EO, approach his wife's company for quotations for printing services and the supply of souvenirs, without disclosing his int erest in the company.
To ensure his wife's company could secure the contracts, the Acting CEO allegedly permitted the use of bogus quotations purported to be submitted by other suppliers, which were all offered at higher prices.
It is believed that between January 1998 and May 2001, the company operated by the Acting CEO's wife had allegedly obtained 32 TELA contracts, worth $790,000 in total, under this fraudulent scheme.
Enquiries also revealed that fictitious quotations were also used in relation to 16 other TELA contracts, worth $970,000 in total, to facilitate the awarding of contracts to a number of designated suppliers.
One of the contracts was allegedly awarded to a company associated with a close friend of the Acting CEO.
The arrestees have been released on ICAC bail, pending further inquiries.