Forty-one netted over bribery facilitated frauds to deceive government subsidies and financial assistance
2004-11-5
The ICAC has arrested a total of 41 persons for two alleged bribery facilitated frauds to deceive subsidies and financial assistance for continuing education, estimated at about $1 million, from the government.
In the first operation codenamed " Windsurfer ", which commenced on Wednesday (November 3, 2004), 39 suspects were arrested for allegedly deceiving subsidies under the Non-means Tested Loan Scheme (NLS) and the Continuing Education Fund (CEF).
The arrestees included a suspected triad member, eight staff of two education centres, 26 NLS or CEF applicants, and four other civilians who acted as indemnifiers in relation to the suspected fraudulent claims.
Both the NLS and CEF funds are managed by the Student Financial Assistance Agency (SFAA) under the Education and Manpower Bureau.
Under the NLS scheme, an eligible applicant receives a low interest rate loan for financing the entire fee of the course he has enrolled in. The applicant is required to produce an indemnifier with supporting employment and income proof to ensure repayme nts to the government.
The CEF fund offers a ceiling subsidy of $10,000. In order to be eligible, an applicant has to complete the course successfully with the required attendance rate and pass the relevant examination.
The ICAC investigation arose from information, alleging that some employees of two education centres might have accepted bribes for facilitating false claims of the NLS and CEF subsidies submitted by a number of their course members.
ICAC inquiries revealed that these course members and applicants of the government subsidies were allegedly recruited by a suspected triad member, who was believed to be the mastermind of the syndicate.
In order to facilitate the fraudulent claims, the suspected triad member had allegedly arranged a number of civilians to act as indemnifiers for the applicants, and provided forged employment and income proof for the indemnifiers to present to SFAA.
It was also alleged that staff members of the education centres had corruptly assisted in falsifying attendance records and examination results of those applicants.
Investigation has so far revealed that over $660,000 in subsidies under NLS and CEF were allegedly deceived from the government.
ICAC inquiries alleged that after receiving the subsidies from the government, the applicants shared the payments with the syndicate.
In another operation, the proprietor of a training centre and one of its course members were yesterday arrested by the ICAC for allegedly deceiving financial assistance under the Small and Medium Enterprises Training Fund (SME Fund) managed by the Trade a nd Industry Department (TID).
SME Fund provides financial assistance to employers and employees of small and medium enterprises to attend business-related training courses.
The arrestees were alleged to have conspired to submit false claims, totalling about $43,000, under the SME fund with false employment records.
The operations were carried out with full assistance of SFAA and TID.
Inquiries of the two cases are continuing.
In the first operation codenamed " Windsurfer ", which commenced on Wednesday (November 3, 2004), 39 suspects were arrested for allegedly deceiving subsidies under the Non-means Tested Loan Scheme (NLS) and the Continuing Education Fund (CEF).
The arrestees included a suspected triad member, eight staff of two education centres, 26 NLS or CEF applicants, and four other civilians who acted as indemnifiers in relation to the suspected fraudulent claims.
Both the NLS and CEF funds are managed by the Student Financial Assistance Agency (SFAA) under the Education and Manpower Bureau.
Under the NLS scheme, an eligible applicant receives a low interest rate loan for financing the entire fee of the course he has enrolled in. The applicant is required to produce an indemnifier with supporting employment and income proof to ensure repayme nts to the government.
The CEF fund offers a ceiling subsidy of $10,000. In order to be eligible, an applicant has to complete the course successfully with the required attendance rate and pass the relevant examination.
The ICAC investigation arose from information, alleging that some employees of two education centres might have accepted bribes for facilitating false claims of the NLS and CEF subsidies submitted by a number of their course members.
ICAC inquiries revealed that these course members and applicants of the government subsidies were allegedly recruited by a suspected triad member, who was believed to be the mastermind of the syndicate.
In order to facilitate the fraudulent claims, the suspected triad member had allegedly arranged a number of civilians to act as indemnifiers for the applicants, and provided forged employment and income proof for the indemnifiers to present to SFAA.
It was also alleged that staff members of the education centres had corruptly assisted in falsifying attendance records and examination results of those applicants.
Investigation has so far revealed that over $660,000 in subsidies under NLS and CEF were allegedly deceived from the government.
ICAC inquiries alleged that after receiving the subsidies from the government, the applicants shared the payments with the syndicate.
In another operation, the proprietor of a training centre and one of its course members were yesterday arrested by the ICAC for allegedly deceiving financial assistance under the Small and Medium Enterprises Training Fund (SME Fund) managed by the Trade a nd Industry Department (TID).
SME Fund provides financial assistance to employers and employees of small and medium enterprises to attend business-related training courses.
The arrestees were alleged to have conspired to submit false claims, totalling about $43,000, under the SME fund with false employment records.
The operations were carried out with full assistance of SFAA and TID.
Inquiries of the two cases are continuing.