Twenty-nine arrested for alleged graft over government education subsidies
2013-5-22
The ICAC has arrested a total of 29 persons in relation to an alleged bribery scam to defraud the government of Non-means Tested Loans (NTLs) estimated at about $750,000.
In a two-phase operation codenamed “Morning Breeze” , which commenced last Monday (May 13), a former operator and three administrative executives of an education centre; three directors of a student recruitment agency; 16 NTL applicants, four indemnifiers, a witness; and an associate of the applicants were arrested.
The ICAC investigation arose from a corruption complaint referred by the Student Financial Assistance Agency (SFAA).
The NTL scheme offers loans at low interest to eligible applicants for paying tuition fees of courses organised by educational institutes accredited by the SFAA.
An applicant is required to submit to the SFAA an application with supporting documents and a declaration, and to provide an indemnifier and a witness on the application form.
In April 2008, the education centre registered a business studies course at a tuition fee of $62,500 with the SFAA under the NTL scheme.
Enquiries revealed that the former operator of the education centre engaged the three directors to recruit bogus students for the course.
It was alleged that the administrative executives corruptly assisted in processing the NTL applications with false information filled by the bogus students, and submitting them to the SFAA between July and September 2011.
After receiving the NTLs from the SFAA, the bogus students defaulted on repayments, while the proceeds were allegedly shared among the arrestees.
It was believed that the arrestees had defrauded the SFAA of NTLs totalling $750,000.
The SFAA has rendered full assistance to the ICAC in its investigation. Inquires are continuing.
In a two-phase operation codenamed “Morning Breeze” , which commenced last Monday (May 13), a former operator and three administrative executives of an education centre; three directors of a student recruitment agency; 16 NTL applicants, four indemnifiers, a witness; and an associate of the applicants were arrested.
The ICAC investigation arose from a corruption complaint referred by the Student Financial Assistance Agency (SFAA).
The NTL scheme offers loans at low interest to eligible applicants for paying tuition fees of courses organised by educational institutes accredited by the SFAA.
An applicant is required to submit to the SFAA an application with supporting documents and a declaration, and to provide an indemnifier and a witness on the application form.
In April 2008, the education centre registered a business studies course at a tuition fee of $62,500 with the SFAA under the NTL scheme.
Enquiries revealed that the former operator of the education centre engaged the three directors to recruit bogus students for the course.
It was alleged that the administrative executives corruptly assisted in processing the NTL applications with false information filled by the bogus students, and submitting them to the SFAA between July and September 2011.
After receiving the NTLs from the SFAA, the bogus students defaulted on repayments, while the proceeds were allegedly shared among the arrestees.
It was believed that the arrestees had defrauded the SFAA of NTLs totalling $750,000.
The SFAA has rendered full assistance to the ICAC in its investigation. Inquires are continuing.