18 netted for alleged bribery and fraud over EMSD contracts and suspected $2m false claims
2004-3-2
The ICAC has arrested 18 persons, including three employees of the Electrical and Mechanical Services Department (EMSD), for alleged bribery and fraud in relation to the subcontracting of EMSD air-conditioning maintenance works, and suspected false claims totalling $2 million from EMSD.
The arrests were made in two operations arising from corruption complaints received by the ICAC against certain EMSD staff members.
In the first operation, code-named " Minigun " which took place last Wednesday (February 25), eight persons, including an acting Assistant Air-conditioning Inspector of EMSD and seven subcontractors, were arrested for suspected corruption in relation to the subcontracting of EMSD maintenance works.
ICAC inquiries revealed that an air-conditioning and engineering company was earlier awarded an EMSD air-conditioning maintenance contract.
It was alleged that the arrested EMSD Assistant Inspector, who was responsible for supervising the works performed by the engineering company, required the maintenance works be subcontracted to specific companies.
In return, the Assistant Inspector was alleged to have solicited and accepted advantages, including free nightclub entertainment, as rewards from the subcontractors.
The Assistant Inspector had also allegedly solicited unauthorised loans ranging from $20,000 to $500,000 from the subcontractors.
Meanwhile, another 10 persons, including two EMSD Building Services Inspectors and eight other subcontractors, were arrested in a separate operation mounted yesterday.
ICAC inquiries revealed that the two arrested EMSD Inspectors were alleged to have approved inflated payment claims from a number of subcontractors in relation to the replacement of lighting in public areas.
It was alleged that the Inspectors had accepted rewards from the subcontractors, including frequent nightclub and karaoke entertainment.
During an internal audit, EMSD discovered that false payment claims, totalling about $2 million, were allegedly made to these subcontractors. It was alleged that part of these suspected false claims related to works under the supervision of the arrested Inspectors.
EMSD has rendered full assistance to the ICAC during its investigations.
All the arrestees have been released on ICAC bail, pending further inquiries.
The arrests were made in two operations arising from corruption complaints received by the ICAC against certain EMSD staff members.
In the first operation, code-named " Minigun " which took place last Wednesday (February 25), eight persons, including an acting Assistant Air-conditioning Inspector of EMSD and seven subcontractors, were arrested for suspected corruption in relation to the subcontracting of EMSD maintenance works.
ICAC inquiries revealed that an air-conditioning and engineering company was earlier awarded an EMSD air-conditioning maintenance contract.
It was alleged that the arrested EMSD Assistant Inspector, who was responsible for supervising the works performed by the engineering company, required the maintenance works be subcontracted to specific companies.
In return, the Assistant Inspector was alleged to have solicited and accepted advantages, including free nightclub entertainment, as rewards from the subcontractors.
The Assistant Inspector had also allegedly solicited unauthorised loans ranging from $20,000 to $500,000 from the subcontractors.
Meanwhile, another 10 persons, including two EMSD Building Services Inspectors and eight other subcontractors, were arrested in a separate operation mounted yesterday.
ICAC inquiries revealed that the two arrested EMSD Inspectors were alleged to have approved inflated payment claims from a number of subcontractors in relation to the replacement of lighting in public areas.
It was alleged that the Inspectors had accepted rewards from the subcontractors, including frequent nightclub and karaoke entertainment.
During an internal audit, EMSD discovered that false payment claims, totalling about $2 million, were allegedly made to these subcontractors. It was alleged that part of these suspected false claims related to works under the supervision of the arrested Inspectors.
EMSD has rendered full assistance to the ICAC during its investigations.
All the arrestees have been released on ICAC bail, pending further inquiries.