Logistics company operator charged by ICAC guilty of defrauding NGO over transport service order worth $140,000
2022-2-28
A logistics company operator, charged by the ICAC, was today (February 28) convicted at the Kowloon City Magistrates’ Courts of conspiracy to defraud The Salvation Army Hong Kong and Macau Command (The Salvation Army) by submitting quotations from three logistic companies under his control for a transport service order worth over $140,000.
Butt Wai-lun, 54, operator of Ruming Logistics (Hong Kong) Company Limited (Ruming Logistics), was found guilty of one count of conspiracy to defraud, contrary to Common Law.
Magistrate Mr Andrew Mok Tze-chung adjourned the case to March 21 for sentence, pending the defendant’s community service order report. The defendant was granted cash bail.
At the material time, welfare NGO The Salvation Army ran a Recycle Programme under which clothing and goods donated by the public would be distributed to its shops for sale.
The court heard that in early 2019, The Salvation Army conducted a quotation exercise for a transport service in relation to the Recycle Programme, and received three quotations respectively submitted by Ruming Logistics and two other companies.
In the belief that the three quotations were submitted independently by different companies which were not related to each other, The Salvation Army accepted the quotations for the purpose of conducting the quotation exercise.
The transport service order was subsequently awarded to Ruming Logistics which offered the lowest bid. After the service was completed in April 2019, The Salvation Army paid service fee of over $140,000 in total to Ruming Logistics in July 2019.
ICAC enquiries revealed that the aforesaid two companies were respectively set up by the mother-in-law and a friend of the defendant. The three quotations submitted to The Salvation Army were prepared by an employee of the defendant upon his request.
Had The Salvation Army known that the three companies were directly or indirectly operated by the defendant, it would not have accepted the three quotations concerned or granted the transport service order to Ruming Logistics.
ICAC investigation arose from a corruption complaint. Upon completion of the investigation, the Commission sought legal advice from the Department of Justice, which advised pressing charges against the defendant. The Salvation Army had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by prosecuting counsel Stephen Fong, assisted by ICAC officer Chu Ka-ho.
Butt Wai-lun, 54, operator of Ruming Logistics (Hong Kong) Company Limited (Ruming Logistics), was found guilty of one count of conspiracy to defraud, contrary to Common Law.
Magistrate Mr Andrew Mok Tze-chung adjourned the case to March 21 for sentence, pending the defendant’s community service order report. The defendant was granted cash bail.
At the material time, welfare NGO The Salvation Army ran a Recycle Programme under which clothing and goods donated by the public would be distributed to its shops for sale.
The court heard that in early 2019, The Salvation Army conducted a quotation exercise for a transport service in relation to the Recycle Programme, and received three quotations respectively submitted by Ruming Logistics and two other companies.
In the belief that the three quotations were submitted independently by different companies which were not related to each other, The Salvation Army accepted the quotations for the purpose of conducting the quotation exercise.
The transport service order was subsequently awarded to Ruming Logistics which offered the lowest bid. After the service was completed in April 2019, The Salvation Army paid service fee of over $140,000 in total to Ruming Logistics in July 2019.
ICAC enquiries revealed that the aforesaid two companies were respectively set up by the mother-in-law and a friend of the defendant. The three quotations submitted to The Salvation Army were prepared by an employee of the defendant upon his request.
Had The Salvation Army known that the three companies were directly or indirectly operated by the defendant, it would not have accepted the three quotations concerned or granted the transport service order to Ruming Logistics.
ICAC investigation arose from a corruption complaint. Upon completion of the investigation, the Commission sought legal advice from the Department of Justice, which advised pressing charges against the defendant. The Salvation Army had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by prosecuting counsel Stephen Fong, assisted by ICAC officer Chu Ka-ho.