ICAC launches financial management guidelines for owners corporations
2009-10-21
The ICAC has launched a territory wide corruption prevention campaign to help Hong Kong’s some 8,000 owners corporations (OCs) minimise corruption risks resulting from inadequate financial management.
The “Integrity and Quality Building and Financial Management Programme” is designed to help OCs, property owners and estate management companies strengthen financial controls in property management.
The centerpiece of the programme is a Building Financial Management Toolkit comprising comprehensive practice guidelines advising OCs how to adopt proper internal financial control.
Contributing partners of the programme are the Home Affairs Department (HAD), Hong Kong Housing Society (HKHS), Hong Kong Institute of Certified Public Accountants (HKICPA) and Hong Kong Association of Property Management Companies (HKAPMC).
Speaking at a press briefing today (Wednesday), Ms Shelley Lee Lai-kuen, Member of ICAC’s Advisory Committee on Corruption and Adviser to its Corruption Prevention and Education Working Group on Building Management said that a considerable number of corruption reports were related to building management in recent years.
“In recent years, building management accounted for over 40 percent of total private sector complaints or about a quarter of all complaints,” she said.
The ICAC received 672 building management related corruption reports in the first nine months of 2009. There were 943 such complaints in the full year of 2008.
“Most of these complaints are against OCs involving internal financial control, building maintenance works, service contracts and the administration of sinking funds,” she said.
“Many OCs are run by owners who volunteer their services in building management work for the common good. Some of them might not be well-versed enough in financial management to handle these matters properly,” she said.
“Some OCs have accumulated substantial funds over the years amounting to over $10 million, which might constitute risks of corruption and other crimes such as embezzlement,” she said.
“The toolkit would provide OCs, property owners and property management companies with a set of practical and user-friendly guidelines for proper financial control,” added Ms Lee.
The toolkit covers areas such as legal requirements, good governance and internal measures for preparation of accounts. Sample financial statements and other related forms are also provided for OCs’ reference.
Transparent and accountable management would also help avoid unnecessary allegations of crimes or malpractices resulting from misunderstanding, Ms Lee said.
Co-hosting the press briefing were Assistant Director of Home Affairs Miss Linda So Wai-sze, HKHS Director Mr Ip Kam-shing, HKICPA Vice President Mr Wilson Fung Ying-wai and HKAPMC President Mr Kendrew Leung Chun-yuen.
On behalf of the ICAC, Ms Lee presented copies of the toolkit to the chairmen and representatives of the 18 District Councils pledging to help promulgate the guidelines in their respective districts.
The toolkit has been uploaded to the ICAC website for public access. Digital copies will also be sent to Hong Kong’s some 8,000 OCs.
The programme also includes a training video for OCs, a dedicated website, TV and radio spot series, roving exhibitions and workshops in the 18 districts to help promote the guidelines to property owners and professionals involved in building management s uch as accountants and property management staff.
The “Integrity and Quality Building and Financial Management Programme” is designed to help OCs, property owners and estate management companies strengthen financial controls in property management.
The centerpiece of the programme is a Building Financial Management Toolkit comprising comprehensive practice guidelines advising OCs how to adopt proper internal financial control.
Contributing partners of the programme are the Home Affairs Department (HAD), Hong Kong Housing Society (HKHS), Hong Kong Institute of Certified Public Accountants (HKICPA) and Hong Kong Association of Property Management Companies (HKAPMC).
Speaking at a press briefing today (Wednesday), Ms Shelley Lee Lai-kuen, Member of ICAC’s Advisory Committee on Corruption and Adviser to its Corruption Prevention and Education Working Group on Building Management said that a considerable number of corruption reports were related to building management in recent years.
“In recent years, building management accounted for over 40 percent of total private sector complaints or about a quarter of all complaints,” she said.
The ICAC received 672 building management related corruption reports in the first nine months of 2009. There were 943 such complaints in the full year of 2008.
“Most of these complaints are against OCs involving internal financial control, building maintenance works, service contracts and the administration of sinking funds,” she said.
“Many OCs are run by owners who volunteer their services in building management work for the common good. Some of them might not be well-versed enough in financial management to handle these matters properly,” she said.
“Some OCs have accumulated substantial funds over the years amounting to over $10 million, which might constitute risks of corruption and other crimes such as embezzlement,” she said.
“The toolkit would provide OCs, property owners and property management companies with a set of practical and user-friendly guidelines for proper financial control,” added Ms Lee.
The toolkit covers areas such as legal requirements, good governance and internal measures for preparation of accounts. Sample financial statements and other related forms are also provided for OCs’ reference.
Transparent and accountable management would also help avoid unnecessary allegations of crimes or malpractices resulting from misunderstanding, Ms Lee said.
Co-hosting the press briefing were Assistant Director of Home Affairs Miss Linda So Wai-sze, HKHS Director Mr Ip Kam-shing, HKICPA Vice President Mr Wilson Fung Ying-wai and HKAPMC President Mr Kendrew Leung Chun-yuen.
On behalf of the ICAC, Ms Lee presented copies of the toolkit to the chairmen and representatives of the 18 District Councils pledging to help promulgate the guidelines in their respective districts.
The toolkit has been uploaded to the ICAC website for public access. Digital copies will also be sent to Hong Kong’s some 8,000 OCs.
The programme also includes a training video for OCs, a dedicated website, TV and radio spot series, roving exhibitions and workshops in the 18 districts to help promote the guidelines to property owners and professionals involved in building management s uch as accountants and property management staff.