Trio charged by ICAC with offering and accepting $7.4m bribes over garment accessories purchase orders
2021-12-31
A director and an employee of a garment accessories trading company and an employee of a garment manufacturer were charged by the ICAC yesterday (December 30) for allegedly offering and accepting bribes totalling about $7.4 million over purchase orders worth at least over $36 million placed by two garment manufacturers for over a period of seven years.
The ICAC investigation arose from a corruption complaint. Upon completion of the investigation, the ICAC sought legal advice from the Department of Justice, which advised charges be laid against the trio.
Ho Kwok-wing, 45, sole director-cum-shareholder of Po Yuen Hong Company Limited (Po Yuen Hong); Chow Yim-chau, 57, account clerk of Po Yuen Hong; and Lai Suk-fan, 54, senior purchaser of Parawin Industries Limited (Parawin), face one count of conspiracy for an agent to accept an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance (POBO) and Section 159A of the Crimes Ordinance.
Ho and Chow further face two counts of conspiracy to offer an advantage to an agent, contrary to Section 9(2)(a) of the POBO and Section 159A of the Crimes Ordinance.
The defendants were released on ICAC bail, pending their appearance in the West Kowloon Magistrates’ Courts next Monday (January 3) for the case to be transferred to the District Court for plea.
The alleged offences took place between July 2012 and December 2019. At the material time, Po Yuen Hong engaged in garment accessories trading business and supplied garment accessories to Parawin for nightclothes and swimwear production. World Easy Garments (HK) Limited (World Easy Garments) was also a client of Po Yuen Hong.
One of the charges alleges that the trio conspired together and with an assistant manager of Po Yuen Hong for Lai to, without lawful authority or reasonable excuse, accept commissions from Ho as an inducement to or reward for Lai to recommend Parawin to place purchase orders with Po Yuen Hong.
It is alleged that the commissions concerned, which were calculated at a rate ranging from $1 to $2 per kilogram of goods ordered by Parawin with Po Yuen Hong, amounted to over $700,000.
Two other charges allege that Ho and Chow conspired together and with the assistant manager of Po Yuen Hong and a purchasing clerk of World Easy Garments to, without lawful authority or reasonable excuse, offer commissions to the purchasing clerk as an inducement to or reward for placing purchase orders or bogus purchase orders with Po Yuen Hong.
The commissions in relation to these two charges, which amounted to a total of about $6.7 million, were calculated at two rates. Some commissions were allegedly calculated at a rate ranging from three per cent to 10 per cent of the order sum of purchase orders. It is alleged that commissions in relation to suspected bogus purchase orders were calculated at a rate of 80 per cent of the order sum and the goods concerned were not delivered to World Easy Garments. Purchase orders worth totalling over $36 million were involved in the two charges.
Parawin and World Easy Garments have rendered full assistance to the ICAC during its investigation into the case.
The ICAC investigation arose from a corruption complaint. Upon completion of the investigation, the ICAC sought legal advice from the Department of Justice, which advised charges be laid against the trio.
Ho Kwok-wing, 45, sole director-cum-shareholder of Po Yuen Hong Company Limited (Po Yuen Hong); Chow Yim-chau, 57, account clerk of Po Yuen Hong; and Lai Suk-fan, 54, senior purchaser of Parawin Industries Limited (Parawin), face one count of conspiracy for an agent to accept an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance (POBO) and Section 159A of the Crimes Ordinance.
Ho and Chow further face two counts of conspiracy to offer an advantage to an agent, contrary to Section 9(2)(a) of the POBO and Section 159A of the Crimes Ordinance.
The defendants were released on ICAC bail, pending their appearance in the West Kowloon Magistrates’ Courts next Monday (January 3) for the case to be transferred to the District Court for plea.
The alleged offences took place between July 2012 and December 2019. At the material time, Po Yuen Hong engaged in garment accessories trading business and supplied garment accessories to Parawin for nightclothes and swimwear production. World Easy Garments (HK) Limited (World Easy Garments) was also a client of Po Yuen Hong.
One of the charges alleges that the trio conspired together and with an assistant manager of Po Yuen Hong for Lai to, without lawful authority or reasonable excuse, accept commissions from Ho as an inducement to or reward for Lai to recommend Parawin to place purchase orders with Po Yuen Hong.
It is alleged that the commissions concerned, which were calculated at a rate ranging from $1 to $2 per kilogram of goods ordered by Parawin with Po Yuen Hong, amounted to over $700,000.
Two other charges allege that Ho and Chow conspired together and with the assistant manager of Po Yuen Hong and a purchasing clerk of World Easy Garments to, without lawful authority or reasonable excuse, offer commissions to the purchasing clerk as an inducement to or reward for placing purchase orders or bogus purchase orders with Po Yuen Hong.
The commissions in relation to these two charges, which amounted to a total of about $6.7 million, were calculated at two rates. Some commissions were allegedly calculated at a rate ranging from three per cent to 10 per cent of the order sum of purchase orders. It is alleged that commissions in relation to suspected bogus purchase orders were calculated at a rate of 80 per cent of the order sum and the goods concerned were not delivered to World Easy Garments. Purchase orders worth totalling over $36 million were involved in the two charges.
Parawin and World Easy Garments have rendered full assistance to the ICAC during its investigation into the case.