ICAC Response Statement
2014-7-9
The Legislative Council (Legco)’s Select Committee on former ICAC Commissioner’s duty visits, entertainment, and bestowing and receipt of gifts released its report today following its public hearings held in January and March this year. The ICAC would like to express its appreciation to the Select Committee for supporting ICAC’s amendments to its Commission Standing Orders (CSO) so as to strengthen and further clarify the provisions relating to official duty visits, entertainment and bestowing of gifts.
Without influencing the relevant criminal investigation, the ICAC had rendered full assistance to facilitate the Select Committee’s work, including furnishing it with related information and attending the hearing to answer questions raised by its members.
As regards the Select Committee’s remarks on former Commissioner Mr Timothy Tong Hin-ming, the ICAC would refrain from giving any comments in view of the ongoing criminal investigation.
Information provided by the ICAC to the Select Committee
The ICAC noted the view of the Select Committee that some information was not provided to the Select Committee as required in view of the on-going criminal investigation against the former Commissioner. The ICAC reiterated that the Commissioner and the C ommission were unable to furnish the Select Committee with the related information in order to ensure that the criminal investigation was conducted in a fair and impartial manner. Without affecting the criminal investigation, the Commission had rendered full assistance to the Select Committee’s work. In fact, the Director of Public Prosecutions, in a letter dated May 24 last year to Legco’s Public Accounts Committee (PAC), had reminded the PAC that in view of the on-going criminal investigation into the former ICAC Commissioner, it was mandatory that the integrity of the investigation was ensured in its public hearings and would not be pre judiced or jeopardised.
No concealment of information
Regarding the inaccuracy in not including food items in the list of gifts presented by Mr Tong during his tenure as ICAC Commissioner and which had been submitted by the ICAC to Legco in April last year, the ICAC reiterated that the Commission had absolut ely no intention to conceal any information, nor had the Commission deployed any tricky means in this matter. In a statement issued on April 26 last year, the Commission admitted that it had not given thorough consideration in categorising the items due to time constraint, but stressed that the Commission had absolutely no intention to conceal any information, and apologised for any misunderstanding caused by the misjudgment. Given the volume of accounting records, the Commission needed more time to con duct a thorough search and ascertain if there were any other relevant records to be retrieved. As such, the Commission had deployed over 20 staff to examine more than 25,000 copies of payment records and certified receipts, and spent over one month to co mpile a complete list of gifts. While this list was not completed in time for submission to the special meeting of the Finance Committee, it was submitted to the meeting of the Legco Panel on Security on May 27 last year. The Commission also gave the sa me account on this issue at the public hearing of the Select Committee on March 1 this year. In fact, the ICAC has embarked on a process to enhance its record system, including computerisation of the relevant data so as to ensure that accurate and comple te information could be furnished to the Legco in future.
Enhancing governance
The Independent Review Committee appointed by the Chief Executive and the Legco’s PAC had earlier released their reports respectively. These reports offered recommendations on the ICAC’s regulatory systems and procedures for handling official entertainment, gifts and duty visits in various aspects.
The ICAC had accepted the recommendations in both reports and had implemented various measures to enhance its internal governance and monitoring. We had reinforced our internal standing orders to state clearly the procedures and guidelines on the use of public funds and reimbursement of expenses, and set up an “Internal Audit Unit” (IAU). At present, the ICAC has in place good internal governance and is strictly complying with the relevant Government rules and the CSO when using public funds.
Established in October last year, the IAU is tasked to conduct internal audits for various departments of the ICAC [including the Community Relations Department (CRD), the Corruption Prevention Department (CPD), the Administration Branch and the Commissio ner’s Office], and examine expenses to ensure that they were in strict compliance with the government regulations and internal rules to strengthen system control. The IAU has so far submitted its audit report of the Commissioner’s Office to the Advisory Committee on Corruption (ACOC) which was satisfied with the report. The audit report of CPD will be tabled for discussion at the ACOC meeting scheduled for this month (July). Internal audits for the Administration Branch and the CRD are yet to start, and will be submitted to the ACOC accordingly.
【 Please refer to the Annex for measures adopted by the ICAC to enhance internal governance. 】
Budget of expenses on duty visits and gifts/souvenirs
The Select Committee recommended that the ICAC should clearly set out in its annual budget submitted to the ACOC the estimated expenditure for duty visits to be undertaken in the following year and report the actual expenditure to the ACOC on an annual ba sis. The ICAC would consult the ACOC on this recommendation.
As regards the expenditures on gifts, the Select Committee recommended the ICAC to state clearly in its annual estimates submitted to ACOC the estimated expenditures on gifts for the coming year and report to the ACOC the actual annual expenditure on gift s. The ICAC would also consult the ACOC on this recommendation.
Governing the ICAC Commissioner
As regards the criticism that there lacks a set of rules and regulations governing the conduct of the ICAC Commissioner, the ICAC would like to point out that the Commissioner has always been subject to all government regulations, rules, circulars and dep artmental instructions.
Internal checks and balances system
The ICAC’s existing system of checks and balances has proved to be effective over the years. Where a complaint involves the ICAC Commissioner, the Commissioner must recuse to avoid any role conflict, so that the complaint is handled in a fair and just manner.
Conclusion
The ICAC appreciates that the public has very high expectation of the integrity of its staff. In fact, most of the Commission’s staff are self-disciplined and they maintain a high standard of integrity. Through further enhancing internal governance and internal controls, the Commission is confident that it will continue to earn public support and trust.
(END)
Annex
Measures adopted by the ICAC to enhance internal governance
Following the release of the Director of Audit’s report in April 2013, the ICAC has conducted a thorough review on the guidelines of official entertainment, gifts and duty visits, reinforced the ICAC’s Commission Standing Orders (CSO) and issued new guidelines so as to eliminate ambiguities and remind staff that they should strictly comply with the CSO and relevant guidelines.
The ICAC has arranged a number of internal briefing sessions for officers responsible for administrative duties on prevailing administrative requirements to ensure that they fully understand the CSO provisions and guidelines. The ICAC will continue to ar range such briefings.
The ICAC has set up an Internal Audit Unit (IAU) under the Corruption Prevention Department, comprising a Chief Corruption Prevention Officer and a Corruption Prevention Officer who possess professional qualifications in accountancy. The IAU is responsib le for conducting internal audits of the Commission other than the Operations Department, examining expenses to ensure compliance with government regulations and internal regulations, and strengthening system controls. The IAU reports directly to the Com missioner and the Advisory Committee on Corruption (ACOC). Meanwhile, the Operations Department will continue to follow its established internal audit system.
Duty visits
Duty visits will be approved only when they are absolutely necessary in the discharge of the officers’ duties or prominently conducive to the mission and function of the Commission;
The duration of the trip should be as short as possible, covering only the part of the programmes pertaining to the official purposes of that visit. The number of officers joining the trip should be kept to the minimum and should avoid participating in a ny tour programmes arranged by the hosting organisation.
Official entertainment
The ceilings of entertainment per head are $350 for lunch and $450 for dinner. The Commissioner’s approval must be sought if the expenditure exceeds the ceiling rate;
Only guests and ICAC officers directly related to the context of the official business should be considered for invitation for/participation in entertainment. The expenditure, inclusive of food, beverages and tips, is charged to the total expenditure of same entertainment occasions and accounting vote;
All official entertainment hosted by Heads of Department should be approved by the Commissioner. For proper checks and balances, the Head of Operations will endorse official entertainment hosted by the Commissioner; whereas the Assistant Director/Adminis tration will check compliance of those attended by both the Commissioner and the Head of Operations;
A standard form should be used for reimbursement of entertainment expenses;
Since June this year, the Commission has rolled out a computerised electronic form for processing applications for entertainment expenses so as to strengthen supervision and enhance efficiency in data consolidation.
Gifts/souvenirs
ICAC officers should avoid as far as possible offering gifts/souvenirs to and exchanging them with other organisations. Where the exchange of gifts/souvenirs is unavoidable, officers should only present one standard souvenir inscribed with the ICAC logo to the organisation concerned. No gifts/souvenirs should be given on a personal basis. All stocks of souvenirs will be centrally administered and stored by the Administration Branch. Any officer can apply for souvenirs from the Administration Branch sh ould he/she be required to present them to the organisation concerned. Such an application will be recorded.
Report to the ACOC
The Commission reports to the ACOC details of non-standard gifts/souvenirs which are presented for official purposes, and details of official entertainment which exceeds the spending limits.
(END)
Without influencing the relevant criminal investigation, the ICAC had rendered full assistance to facilitate the Select Committee’s work, including furnishing it with related information and attending the hearing to answer questions raised by its members.
As regards the Select Committee’s remarks on former Commissioner Mr Timothy Tong Hin-ming, the ICAC would refrain from giving any comments in view of the ongoing criminal investigation.
Information provided by the ICAC to the Select Committee
The ICAC noted the view of the Select Committee that some information was not provided to the Select Committee as required in view of the on-going criminal investigation against the former Commissioner. The ICAC reiterated that the Commissioner and the C ommission were unable to furnish the Select Committee with the related information in order to ensure that the criminal investigation was conducted in a fair and impartial manner. Without affecting the criminal investigation, the Commission had rendered full assistance to the Select Committee’s work. In fact, the Director of Public Prosecutions, in a letter dated May 24 last year to Legco’s Public Accounts Committee (PAC), had reminded the PAC that in view of the on-going criminal investigation into the former ICAC Commissioner, it was mandatory that the integrity of the investigation was ensured in its public hearings and would not be pre judiced or jeopardised.
No concealment of information
Regarding the inaccuracy in not including food items in the list of gifts presented by Mr Tong during his tenure as ICAC Commissioner and which had been submitted by the ICAC to Legco in April last year, the ICAC reiterated that the Commission had absolut ely no intention to conceal any information, nor had the Commission deployed any tricky means in this matter. In a statement issued on April 26 last year, the Commission admitted that it had not given thorough consideration in categorising the items due to time constraint, but stressed that the Commission had absolutely no intention to conceal any information, and apologised for any misunderstanding caused by the misjudgment. Given the volume of accounting records, the Commission needed more time to con duct a thorough search and ascertain if there were any other relevant records to be retrieved. As such, the Commission had deployed over 20 staff to examine more than 25,000 copies of payment records and certified receipts, and spent over one month to co mpile a complete list of gifts. While this list was not completed in time for submission to the special meeting of the Finance Committee, it was submitted to the meeting of the Legco Panel on Security on May 27 last year. The Commission also gave the sa me account on this issue at the public hearing of the Select Committee on March 1 this year. In fact, the ICAC has embarked on a process to enhance its record system, including computerisation of the relevant data so as to ensure that accurate and comple te information could be furnished to the Legco in future.
Enhancing governance
The Independent Review Committee appointed by the Chief Executive and the Legco’s PAC had earlier released their reports respectively. These reports offered recommendations on the ICAC’s regulatory systems and procedures for handling official entertainment, gifts and duty visits in various aspects.
The ICAC had accepted the recommendations in both reports and had implemented various measures to enhance its internal governance and monitoring. We had reinforced our internal standing orders to state clearly the procedures and guidelines on the use of public funds and reimbursement of expenses, and set up an “Internal Audit Unit” (IAU). At present, the ICAC has in place good internal governance and is strictly complying with the relevant Government rules and the CSO when using public funds.
Established in October last year, the IAU is tasked to conduct internal audits for various departments of the ICAC [including the Community Relations Department (CRD), the Corruption Prevention Department (CPD), the Administration Branch and the Commissio ner’s Office], and examine expenses to ensure that they were in strict compliance with the government regulations and internal rules to strengthen system control. The IAU has so far submitted its audit report of the Commissioner’s Office to the Advisory Committee on Corruption (ACOC) which was satisfied with the report. The audit report of CPD will be tabled for discussion at the ACOC meeting scheduled for this month (July). Internal audits for the Administration Branch and the CRD are yet to start, and will be submitted to the ACOC accordingly.
【 Please refer to the Annex for measures adopted by the ICAC to enhance internal governance. 】
Budget of expenses on duty visits and gifts/souvenirs
The Select Committee recommended that the ICAC should clearly set out in its annual budget submitted to the ACOC the estimated expenditure for duty visits to be undertaken in the following year and report the actual expenditure to the ACOC on an annual ba sis. The ICAC would consult the ACOC on this recommendation.
As regards the expenditures on gifts, the Select Committee recommended the ICAC to state clearly in its annual estimates submitted to ACOC the estimated expenditures on gifts for the coming year and report to the ACOC the actual annual expenditure on gift s. The ICAC would also consult the ACOC on this recommendation.
Governing the ICAC Commissioner
As regards the criticism that there lacks a set of rules and regulations governing the conduct of the ICAC Commissioner, the ICAC would like to point out that the Commissioner has always been subject to all government regulations, rules, circulars and dep artmental instructions.
Internal checks and balances system
The ICAC’s existing system of checks and balances has proved to be effective over the years. Where a complaint involves the ICAC Commissioner, the Commissioner must recuse to avoid any role conflict, so that the complaint is handled in a fair and just manner.
Conclusion
The ICAC appreciates that the public has very high expectation of the integrity of its staff. In fact, most of the Commission’s staff are self-disciplined and they maintain a high standard of integrity. Through further enhancing internal governance and internal controls, the Commission is confident that it will continue to earn public support and trust.
(END)
Annex
Measures adopted by the ICAC to enhance internal governance
Following the release of the Director of Audit’s report in April 2013, the ICAC has conducted a thorough review on the guidelines of official entertainment, gifts and duty visits, reinforced the ICAC’s Commission Standing Orders (CSO) and issued new guidelines so as to eliminate ambiguities and remind staff that they should strictly comply with the CSO and relevant guidelines.
The ICAC has arranged a number of internal briefing sessions for officers responsible for administrative duties on prevailing administrative requirements to ensure that they fully understand the CSO provisions and guidelines. The ICAC will continue to ar range such briefings.
The ICAC has set up an Internal Audit Unit (IAU) under the Corruption Prevention Department, comprising a Chief Corruption Prevention Officer and a Corruption Prevention Officer who possess professional qualifications in accountancy. The IAU is responsib le for conducting internal audits of the Commission other than the Operations Department, examining expenses to ensure compliance with government regulations and internal regulations, and strengthening system controls. The IAU reports directly to the Com missioner and the Advisory Committee on Corruption (ACOC). Meanwhile, the Operations Department will continue to follow its established internal audit system.
Duty visits
Duty visits will be approved only when they are absolutely necessary in the discharge of the officers’ duties or prominently conducive to the mission and function of the Commission;
The duration of the trip should be as short as possible, covering only the part of the programmes pertaining to the official purposes of that visit. The number of officers joining the trip should be kept to the minimum and should avoid participating in a ny tour programmes arranged by the hosting organisation.
Official entertainment
The ceilings of entertainment per head are $350 for lunch and $450 for dinner. The Commissioner’s approval must be sought if the expenditure exceeds the ceiling rate;
Only guests and ICAC officers directly related to the context of the official business should be considered for invitation for/participation in entertainment. The expenditure, inclusive of food, beverages and tips, is charged to the total expenditure of same entertainment occasions and accounting vote;
All official entertainment hosted by Heads of Department should be approved by the Commissioner. For proper checks and balances, the Head of Operations will endorse official entertainment hosted by the Commissioner; whereas the Assistant Director/Adminis tration will check compliance of those attended by both the Commissioner and the Head of Operations;
A standard form should be used for reimbursement of entertainment expenses;
Since June this year, the Commission has rolled out a computerised electronic form for processing applications for entertainment expenses so as to strengthen supervision and enhance efficiency in data consolidation.
Gifts/souvenirs
ICAC officers should avoid as far as possible offering gifts/souvenirs to and exchanging them with other organisations. Where the exchange of gifts/souvenirs is unavoidable, officers should only present one standard souvenir inscribed with the ICAC logo to the organisation concerned. No gifts/souvenirs should be given on a personal basis. All stocks of souvenirs will be centrally administered and stored by the Administration Branch. Any officer can apply for souvenirs from the Administration Branch sh ould he/she be required to present them to the organisation concerned. Such an application will be recorded.
Report to the ACOC
The Commission reports to the ACOC details of non-standard gifts/souvenirs which are presented for official purposes, and details of official entertainment which exceeds the spending limits.
(END)