Logistics company operator charged after ICAC graft probe reveals scam to defraud NGO over transport service order worth $140,000
2021-7-29
The operator of a logistics company was charged by the ICAC yesterday (July 28) with conspiracy to defraud a welfare non-governmental organisation (NGO) by submitting quotations from three companies under his control for a transport service order worth over $140,000.
The ICAC investigation arose from a corruption complaint. After seeking legal advice from the Department of Justice, Butt Wai-lun, 53, operator of Ruming Logistics (Hong Kong) Company Limited (Ruming Logistics), was charged with one count of conspiracy to defraud, contrary to Common Law.
The defendant has been released on ICAC bail. He will appear in the Kowloon City Magistrates’ Courts tomorrow (July 30) for plea.
At the material time, The Salvation Army Hong Kong and Macau Command (The Salvation Army), a welfare NGO, ran a Recycle Programme under which clothing and goods donated by the public would be distributed to its shops for sale.
In early 2019, The Salvation Army conducted a quotation exercise for a transport service in relation to the Recycle Programme, and received three quotations submitted by Ruming Logistics operated by the defendant and two other companies.
The charge alleges that on or about March 1, 2019, the defendant conspired together with an employee of Ruming Logistics and other persons to defraud The Salvation Army by dishonestly falsely representing that the quotations submitted by Ruming Logistics and the aforesaid two companies for the transport service concerned were genuinely competitive ones and prepared separately from and independently of each other, thereby deceiving The Salvation Army into granting the service order to Ruming Logistics.
ICAC enquiries revealed that the aforesaid two companies were respectively set up by the mother-in-law and a friend of the defendant. The transport service order worth over $140,000 was eventually awarded to Ruming Logistics.
The Salvation Army has rendered full assistance to the ICAC during its investigation into the case.
The ICAC investigation arose from a corruption complaint. After seeking legal advice from the Department of Justice, Butt Wai-lun, 53, operator of Ruming Logistics (Hong Kong) Company Limited (Ruming Logistics), was charged with one count of conspiracy to defraud, contrary to Common Law.
The defendant has been released on ICAC bail. He will appear in the Kowloon City Magistrates’ Courts tomorrow (July 30) for plea.
At the material time, The Salvation Army Hong Kong and Macau Command (The Salvation Army), a welfare NGO, ran a Recycle Programme under which clothing and goods donated by the public would be distributed to its shops for sale.
In early 2019, The Salvation Army conducted a quotation exercise for a transport service in relation to the Recycle Programme, and received three quotations submitted by Ruming Logistics operated by the defendant and two other companies.
The charge alleges that on or about March 1, 2019, the defendant conspired together with an employee of Ruming Logistics and other persons to defraud The Salvation Army by dishonestly falsely representing that the quotations submitted by Ruming Logistics and the aforesaid two companies for the transport service concerned were genuinely competitive ones and prepared separately from and independently of each other, thereby deceiving The Salvation Army into granting the service order to Ruming Logistics.
ICAC enquiries revealed that the aforesaid two companies were respectively set up by the mother-in-law and a friend of the defendant. The transport service order worth over $140,000 was eventually awarded to Ruming Logistics.
The Salvation Army has rendered full assistance to the ICAC during its investigation into the case.