Fourteen persons have been arrested by the ICAC yesterday (Thursday) for alleged corruption and fraud in relation to the awarding of various service contracts at construction site for a viaduct project in Sham Shui Po.

The arrestees included a project manager, a purchasing manager, and an accounting staff of a piling contractor.

Also arrested in an operation, code-named “Garnet” , were seven subcontractors and hardware suppliers, as well as four of their staff members and associates.

The ICAC earlier received a corruption complaint, alleging that some staff members of a piling contractor of a viaduct project in Sham Shui Po might have accepted advantages from subcontractors and suppliers for awarding contracts or placing purchase orde rs.

Inquiries revealed that the arrested project manager, purchasing manager and the accounting staff of the piling contractor had, on a number of occasions, allegedly accepted free nightclub entertainment and escort services from various subcontractors and s uppliers.

In return, the subcontractors and suppliers were allegedly awarded contracts for various services, including crane rental, supply of construction materials, transportation of heavy machinery, and removal of construction spoils from the viaduct constructio n site.

The purchasing manager was also alleged to have accepted bribes, in the form of loans totalling about $350,000, from the subcontractors and suppliers.

The purchasing manager was further alleged to have conspired with one of the hardware suppliers to issue bogus invoices of about $150,000 to the piling subcontractor in order to offset some of the loans.

Inquiries also revealed that with the corrupt assistance of the accounting staff, payments for subcontractors and suppliers were expedited.

The arrestees have been released on ICAC bail. Inquiries are continuing.