Civil servant couple and EMSD subcontractor charged by ICAC with MIPO, bribery and money laundering
2022-4-12
The ICAC today (April 12) charged a Senior Building Services Engineer of the Electrical and Mechanical Services Department (EMSD), his wife who is a Clinical Psychologist of the Social Welfare Department (SWD), and a subcontractor of the EMSD with misconduct in public office (MIPO) and bribery over EMSD’s minor works contracts worth about $91.4 million, and laundering crime proceeds totalling over $9.5 million.
The investigation arose from corruption complaints filed with the ICAC. After seeking legal advice from the Department of Justice, a total of nine charges were preferred against the trio earlier today.
The defendants are Zsa Sing-tak, 57, Senior Building Services Engineer of the EMSD; Zsa’s wife Ng Wai-shan, 50, Clinical Psychologist of the SWD; and Chan Tsz-wing, 55, subcontractor of the EMSD. They will be brought to the Eastern Magistrates’ Courts this afternoon for mention.
Zsa alone faces two counts of MIPO, contrary to Common Law; and one of public servant accepting an advantage, contrary to Section 4(2)(a) of the Prevention of Bribery Ordinance (POBO). Chan faces one count of offering an advantage to a public servant, contrary to Section 4(1)(a) of the POBO.
Zsa and Ng are further charged with a total of five counts of dealing with property known or believed to represent proceeds of an indictable offence, contrary to Section 25(1) of the Organized and Serious Crimes Ordinance.
The MIPO and bribery offences took place between February 2017 and February 2019, while the laundering crime proceeds offences happened over a span of seven years between January 2012 and May 2019.
Zsa joined the EMSD in 1991 and was promoted to Senior Building Services Engineer in October 2014. Since August 2013, he was posted to Minor Works Sub-Division under Municipal Sector Division. He was responsible for handling and overseeing tendering and operations of public works contracts. At the material time, his wife, Ng, was a Clinical Psychologist of the SWD.
Chan was the director-cum-shareholder of Million Engineering Limited (MEL), Great Rise Engineering Limited (GREL) and Sun Wo Engineering Consultants Limited (SWECL).
Between October 2016 and April 2018, the Minors Works Sub-Division in which Zsa was working awarded two minor works contracts with fees totalling about $91.4 million to two main contractors. The contracts were subsequently subcontracted to MEL, GREL and SWECL.
According to the Circular issued by the Civil Service Bureau and the Guide on Conduct and Discipline issued by the EMSD, staff members of the department should avoid any conflict of interest with any tenderer and are required to declare any conflict of interest in relation to a tendering exercise and the subsequent contract management.
Two of the charges allege that Zsa, in the course of or in relation to his public office, without reasonable excuse or justification, willfully misconducted himself by failing to declare his conflict of interest arising from his personal friendship with Chan and another director of SWECL, both subcontractors of the above EMSD contracts in respect of which Zsa was responsible for the management and supervision of the performance of the contractors.
Two other charges allege that Zsa and Chan respectively accepted and offered $40,000, without lawful authority or reasonable excuse, as an inducement to or reward for ZSA being or remaining favourably disposed to MEL, GREL, SWECL or other companies.
Enquiries revealed that during the material period, hundreds of cash deposits of substantial amount with unknown source were made into the bank accounts of the two civil servants—Zsa and Ng.
The remaining five charges allege that Zsa and Ng, dealt with a total of over $9.5 million deposited into four bank accounts of them, knowing or having reasonable grounds to believe that they in whole or in part, directly or indirectly represented the proceeds of an indictable offence.
Arising from the same investigation, Ng alone faces four other charges of fraud, contrary to Section 16A of the Theft Ordinance.
Between November 2016 and August 2018, Ng obtained one mortgage loan and three personal loans totalling over $7.3 million from three banks, namely Dah Sing Bank, Limited, Industrial and Commercial Bank of China (Asia) Limited and The Bank of East Asia, Limited.
The charges allege that Ng obtained the four loans by making false representations to the banks about her employment with two companies set up by herself or her mother, and her monthly incomes earned from the two companies.
The EMSD, the SWD and the three banks concerned have rendered full assistance to the ICAC during its investigation into the cases.
An ICAC spokesperson said the Commission attaches great importance to civil service integrity. Civil servants supervising government contracts are reminded to uphold the core value of probity and properly handle conflict of interest in order to safeguard the public interest.
The investigation arose from corruption complaints filed with the ICAC. After seeking legal advice from the Department of Justice, a total of nine charges were preferred against the trio earlier today.
The defendants are Zsa Sing-tak, 57, Senior Building Services Engineer of the EMSD; Zsa’s wife Ng Wai-shan, 50, Clinical Psychologist of the SWD; and Chan Tsz-wing, 55, subcontractor of the EMSD. They will be brought to the Eastern Magistrates’ Courts this afternoon for mention.
Zsa alone faces two counts of MIPO, contrary to Common Law; and one of public servant accepting an advantage, contrary to Section 4(2)(a) of the Prevention of Bribery Ordinance (POBO). Chan faces one count of offering an advantage to a public servant, contrary to Section 4(1)(a) of the POBO.
Zsa and Ng are further charged with a total of five counts of dealing with property known or believed to represent proceeds of an indictable offence, contrary to Section 25(1) of the Organized and Serious Crimes Ordinance.
The MIPO and bribery offences took place between February 2017 and February 2019, while the laundering crime proceeds offences happened over a span of seven years between January 2012 and May 2019.
Zsa joined the EMSD in 1991 and was promoted to Senior Building Services Engineer in October 2014. Since August 2013, he was posted to Minor Works Sub-Division under Municipal Sector Division. He was responsible for handling and overseeing tendering and operations of public works contracts. At the material time, his wife, Ng, was a Clinical Psychologist of the SWD.
Chan was the director-cum-shareholder of Million Engineering Limited (MEL), Great Rise Engineering Limited (GREL) and Sun Wo Engineering Consultants Limited (SWECL).
Between October 2016 and April 2018, the Minors Works Sub-Division in which Zsa was working awarded two minor works contracts with fees totalling about $91.4 million to two main contractors. The contracts were subsequently subcontracted to MEL, GREL and SWECL.
According to the Circular issued by the Civil Service Bureau and the Guide on Conduct and Discipline issued by the EMSD, staff members of the department should avoid any conflict of interest with any tenderer and are required to declare any conflict of interest in relation to a tendering exercise and the subsequent contract management.
Two of the charges allege that Zsa, in the course of or in relation to his public office, without reasonable excuse or justification, willfully misconducted himself by failing to declare his conflict of interest arising from his personal friendship with Chan and another director of SWECL, both subcontractors of the above EMSD contracts in respect of which Zsa was responsible for the management and supervision of the performance of the contractors.
Two other charges allege that Zsa and Chan respectively accepted and offered $40,000, without lawful authority or reasonable excuse, as an inducement to or reward for ZSA being or remaining favourably disposed to MEL, GREL, SWECL or other companies.
Enquiries revealed that during the material period, hundreds of cash deposits of substantial amount with unknown source were made into the bank accounts of the two civil servants—Zsa and Ng.
The remaining five charges allege that Zsa and Ng, dealt with a total of over $9.5 million deposited into four bank accounts of them, knowing or having reasonable grounds to believe that they in whole or in part, directly or indirectly represented the proceeds of an indictable offence.
Arising from the same investigation, Ng alone faces four other charges of fraud, contrary to Section 16A of the Theft Ordinance.
Between November 2016 and August 2018, Ng obtained one mortgage loan and three personal loans totalling over $7.3 million from three banks, namely Dah Sing Bank, Limited, Industrial and Commercial Bank of China (Asia) Limited and The Bank of East Asia, Limited.
The charges allege that Ng obtained the four loans by making false representations to the banks about her employment with two companies set up by herself or her mother, and her monthly incomes earned from the two companies.
The EMSD, the SWD and the three banks concerned have rendered full assistance to the ICAC during its investigation into the cases.
An ICAC spokesperson said the Commission attaches great importance to civil service integrity. Civil servants supervising government contracts are reminded to uphold the core value of probity and properly handle conflict of interest in order to safeguard the public interest.