EMSD engineers arrested for alleged bribery and misconduct over awarding of IT projects

2003-3-11

The ICAC has arrested two serving and one retired engineers of the Electrical and Mechanical Services Department (EMSD) for alleged bribery and misconduct in public office in relation to the awarding of three information technology (IT) projects commissio ned by the Transport Department.

The arrested EMSD staff included two serving Electronics Engineers, as well as a retired Senior Project Engineer.

Also netted in the operation codenamed " Flamingo ", which commenced yesterday (Monday), were a chief executive officer, a director and a sales representative of an IT company.

The ICAC commenced investigation after receiving a corruption complaint, alleging that some EMSD staff might have accepted advantages from an IT company for awarding computerization projects.

One of the projects involved the establishment of a computerized system for allocating examiners to candidates taking driving tests at various test centres.

In accordance with the Government Stores and Procurement Regulations, EMSD was required to invite quotations from five different companies in order to select a contractor for designing the system and setting up a trial run at one of the centres.

Inquiries revealed that the arrested EMSD staff, after obtaining a quotation from an IT company, requested its director to submit four other quotations from different companies in order to meet the government procurement regulations.

It was alleged that a sales representative of the IT company had subsequently prepared four bogus quotations, the prices of which were 10 to 30 per cent higher than that initially submitted by the IT company. As a result, the project was awarded to the I T company concerned.

During the investigation, it was also revealed that the arrested chief executive officer had allegedly submitted bogus quotations for two other computerization projects in relation to vehicle examinations, and was subsequently awarded one of the projects.

The arrestees have been released on ICAC bail. Inquiries into the corruption allegation are continuing.
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