Fifty-four netted for alleged corruption facilitated fraud over government education subsidies
2008-6-19
The ICAC has smashed a syndicate and arrested a total of 54 persons in relation to an alleged bribery scam to defraud the government of subsidies for continuing education, estimated at about $3 million.
Arrested in the operation, codenamed “Heat Wave” commencing on Tuesday (June 17), were five employees of a training institution and its founding company –'96 respectively two managers, a supervisor and two instructors.
Also arrested were seven middlemen and 42 persons acting as bogus students and/or indemnifiers for a management course, who allegedly made fraudulent applications for loans under the Non-means Tested Loan Scheme (NTL) managed by the Student Financial Assi stance Agency (SFAA) of the Education Bureau.
The ICAC investigation arose from information on an alleged bribery scam to deceive government subsidies.
The NTL offers a low interest rate loan to finance the tuition fees of a course in which an eligible applicant has enrolled. Under normal circumstances, the loan can be repaid within 10 years.
The applicant is required to produce an indemnifier with the latter’s supporting employment and income proof to ensure repayments of the loans.
ICAC inquiries revealed that the two managers of the training institution allegedly masterminded a scam to deceive NTL.
It is alleged that through the middlemen, the managers recruited a number of bogus students to enroll in a management course, purportedly offered by the training institution charging each student a tuition fee of $75,000. So far, there is indication show ing that at least 40 bogus students had made applications for NTL.
It is also alleged that the staff members of the training institution corruptly assisted in processing the NTL applications submitted by the bogus students, falsifying course programmes and attendance records.
It is suspected that the course was fake. Since some personal particulars in the application forms, including those relating to the indemnifiers, were false, the government could not recover the NTL so granted when there was default in repayment.
The ICAC investigation also revealed that after receiving the NTL in four installments, the syndicate members would share the proceeds among themselves.
It is also suspected that some of the bogus students had allegedly applied for the $10,000 government subsidies under the Continuing Education Fund (CEF) by falsely claiming that they had completed courses with three other training institutions. The CEF is also managed by the SFAA but funded by the Labour and Welfare Bureau.
The Education Bureau, the Labour and Welfare Bureau and the SFAA have been rendering full assistance in the ICAC investigation.
Inquires are continuing.
Arrested in the operation, codenamed “Heat Wave” commencing on Tuesday (June 17), were five employees of a training institution and its founding company –'96 respectively two managers, a supervisor and two instructors.
Also arrested were seven middlemen and 42 persons acting as bogus students and/or indemnifiers for a management course, who allegedly made fraudulent applications for loans under the Non-means Tested Loan Scheme (NTL) managed by the Student Financial Assi stance Agency (SFAA) of the Education Bureau.
The ICAC investigation arose from information on an alleged bribery scam to deceive government subsidies.
The NTL offers a low interest rate loan to finance the tuition fees of a course in which an eligible applicant has enrolled. Under normal circumstances, the loan can be repaid within 10 years.
The applicant is required to produce an indemnifier with the latter’s supporting employment and income proof to ensure repayments of the loans.
ICAC inquiries revealed that the two managers of the training institution allegedly masterminded a scam to deceive NTL.
It is alleged that through the middlemen, the managers recruited a number of bogus students to enroll in a management course, purportedly offered by the training institution charging each student a tuition fee of $75,000. So far, there is indication show ing that at least 40 bogus students had made applications for NTL.
It is also alleged that the staff members of the training institution corruptly assisted in processing the NTL applications submitted by the bogus students, falsifying course programmes and attendance records.
It is suspected that the course was fake. Since some personal particulars in the application forms, including those relating to the indemnifiers, were false, the government could not recover the NTL so granted when there was default in repayment.
The ICAC investigation also revealed that after receiving the NTL in four installments, the syndicate members would share the proceeds among themselves.
It is also suspected that some of the bogus students had allegedly applied for the $10,000 government subsidies under the Continuing Education Fund (CEF) by falsely claiming that they had completed courses with three other training institutions. The CEF is also managed by the SFAA but funded by the Labour and Welfare Bureau.
The Education Bureau, the Labour and Welfare Bureau and the SFAA have been rendering full assistance in the ICAC investigation.
Inquires are continuing.