Company proprietor admits offering illegal rebates to secure business

2016-11-22

A proprietor of a food trading company, charged by the ICAC, today (November 22) admitted at the Kowloon City Magistracy that he had offered illegal rebates totalling over $15,000 to a former supervisor of a Japanese restaurant to secure business.

Wong Kai-wai, 28, sole proprietor of Ocean Star Food Trading Company (Ocean Star), pleaded guilty to one count of offering an advantage to an agent, contrary to Sections 9(2)(a) of the Prevention of Bribery Ordinance.

Magistrate Miss Veronica Heung Shuk-han adjourned the case to December 21 this year for mention, pending a background report. The defendant was granted cash bail of $10,000.

The court heard that at the material time, Ocean Star supplied seafood to restaurants. Among them was Daixija Japanese Buffet (Daixija), a Japanese restaurant in Jordan, Kowloon.

In July 2015, the operator of Daixija found that the profit margin of the sashimi section was declining. The restaurant also received complaints from customers against the poor quality of seafood.

In reviewing purchase orders, the operator found that its sashimi section started placing orders with Ocean Star, a new seafood supplier, in June 2015.

Between June and September 2015, Daixija ordered a total of $250,000 worth of seafood from Ocean Star, ranging from about $4,000 to about $6,000 per day.

The court heard that on September 8, 2015, a supervisor and three staff members of Daixija’s sashimi section tendered their resignations without reason. Since then, Daixija had not ordered seafood from Ocean Star.

Nine days later, the operator called the defendant for a quotation of raw seafood supply. The defendant said he would offer rebates ranging from eight to 10 per cent of the orders placed with Ocean Star.

The defendant was arrested by ICAC officers on February 23, 2016. Under caution, the defendant admitted that he offered monthly rebates of $15,813 in total to the supervisor of Daixija’s sashimi section between June and September 2015, the court was told.

Daixija had rendered full assistance to the ICAC during its investigation.

The prosecution was today represented by ICAC officer Wayman Leung.
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