Ten arrested for alleged bribery scams to deceive $10m commissions over steel trade
2003-7-11
The ICAC has arrested ten persons, including a senior staff member of an enterprise, for alleged bribery scams to deceive sales commissions totalling $10 million from the company.
Also arrested in an operation code-named " Cold Mountain ", which commenced on Tuesday (July 8), were the enterprise's three managers, a former employee of a Mainland's motor manufacturing company; two directors of a shipping company; and three other individuals.
The enterprise, which is a steel supplier to a Mainland company and its subsidiaries including the motor manufacturing company, pays legitimate commissions to its customers.
The enterprise employs the shipping company to transport steel from Hong Kong to its clients in the Mainland.
The ICAC investigation arose from a corruption complaint against the arrested senior staff member of the enterprise, who was responsible for the trading of steel.
It was alleged that the senior staff member had arranged for the enterprise to sign an agreement with two trading companies, falsely representing that these two companies had assisted in the sales of steel to the Mainland company and were entitled to paym ents of commissions.
The two trading companies were allegedly shell companies under the control of the senior staff member.
The senior staff member was also alleged to have offered bribes to a former employee of the motor manufacturing company for conniving at the scams.
It was believed that the enterprise was deceived into paying sales commissions, amounting to over $10 million, to the shell companies over the years.
The senior staff member of the enterprise was also alleged to have corruptly conspired with the shipping company's directors to defraud the enterprise by inflating invoice amounts in relation to transportation services, and pocketed the difference.
The three arrested managers of the enterprise were alleged to have accepted bribes from the senior staff member for placing transportation orders with the shipping company.
All the arrestees have been released on ICAC bail. Inquiries are continuing.
Also arrested in an operation code-named " Cold Mountain ", which commenced on Tuesday (July 8), were the enterprise's three managers, a former employee of a Mainland's motor manufacturing company; two directors of a shipping company; and three other individuals.
The enterprise, which is a steel supplier to a Mainland company and its subsidiaries including the motor manufacturing company, pays legitimate commissions to its customers.
The enterprise employs the shipping company to transport steel from Hong Kong to its clients in the Mainland.
The ICAC investigation arose from a corruption complaint against the arrested senior staff member of the enterprise, who was responsible for the trading of steel.
It was alleged that the senior staff member had arranged for the enterprise to sign an agreement with two trading companies, falsely representing that these two companies had assisted in the sales of steel to the Mainland company and were entitled to paym ents of commissions.
The two trading companies were allegedly shell companies under the control of the senior staff member.
The senior staff member was also alleged to have offered bribes to a former employee of the motor manufacturing company for conniving at the scams.
It was believed that the enterprise was deceived into paying sales commissions, amounting to over $10 million, to the shell companies over the years.
The senior staff member of the enterprise was also alleged to have corruptly conspired with the shipping company's directors to defraud the enterprise by inflating invoice amounts in relation to transportation services, and pocketed the difference.
The three arrested managers of the enterprise were alleged to have accepted bribes from the senior staff member for placing transportation orders with the shipping company.
All the arrestees have been released on ICAC bail. Inquiries are continuing.