ICAC warns SMEs against use of bribery amid financial crisis
2009-5-27
The Independent Commission Against Corruption (ICAC) urges small and medium enterprises (SMEs) to stay away from corruption despite financial pressure under the current economic downturn.
In the latest issue of ICAC’s international newsletter –'96 ICAC Post , Ms Julie Mu Fee-man, ICAC’s Director of Community Relations, noted that in difficult times, some SMEs might be tempted to resort to bribery in securing loans or business orders.
Following the 1998 Asian financial turmoil, the ICAC detected a number of corruption cases involving SMEs engaged in manufacturing, trading and catering business.
The newsletter featured a real case involving two SME owners who offered $900,000 in bribes to a bank officer to secure loans totalling $132 million in a bid to ease financial strains facing their companies. The couple received heavy jail sentences for m asterminding the corrupt scheme.
“Bribery is like quicksand –'96 you will sink fast in it. Criminal prosecution and serious damages to business reputation were what many would get in return,” Ms Mu warned.
In the first four months of this year, the ICAC received 1,068 corruption reports, representing a slight increase of six per cent compared with the same period last year.
In line with the trends in recent years, corruption reports concerning the private sector took up 62 per cent while those involving government departments and public bodies respectively accounted for 33 per cent and five per cent.
A special taskforce has been formed by the ICAC to step up corruption prevention and education services for SMEs. It will produce a guidebook to help these companies adopt best practices to strengthen internal control.
Members of the public may access the newsletter on the ICAC website ( http://www.icac.org.hk ).
In the latest issue of ICAC’s international newsletter –'96 ICAC Post , Ms Julie Mu Fee-man, ICAC’s Director of Community Relations, noted that in difficult times, some SMEs might be tempted to resort to bribery in securing loans or business orders.
Following the 1998 Asian financial turmoil, the ICAC detected a number of corruption cases involving SMEs engaged in manufacturing, trading and catering business.
The newsletter featured a real case involving two SME owners who offered $900,000 in bribes to a bank officer to secure loans totalling $132 million in a bid to ease financial strains facing their companies. The couple received heavy jail sentences for m asterminding the corrupt scheme.
“Bribery is like quicksand –'96 you will sink fast in it. Criminal prosecution and serious damages to business reputation were what many would get in return,” Ms Mu warned.
In the first four months of this year, the ICAC received 1,068 corruption reports, representing a slight increase of six per cent compared with the same period last year.
In line with the trends in recent years, corruption reports concerning the private sector took up 62 per cent while those involving government departments and public bodies respectively accounted for 33 per cent and five per cent.
A special taskforce has been formed by the ICAC to step up corruption prevention and education services for SMEs. It will produce a guidebook to help these companies adopt best practices to strengthen internal control.
Members of the public may access the newsletter on the ICAC website ( http://www.icac.org.hk ).