Ex-contractor staff of PolyU’s community college charged by ICAC admits $550,000 purchase order fraud
2022-6-15
A former employee of a contractor of the Hong Kong Community College (HKCC) under the Hong Kong Polytechnic University (PolyU), charged by the ICAC, today (June 15) admitted at the Kowloon City Magistrates’ Courts that he had deceived the HKCC into placing purchase orders worth totalling over $550,000 with a company by concealing his and his mother’s interest in the company.
Dillion Leung Ka-wah, 46, former chief maintenance engineer of Hong Yip Service Company Limited (Hong Yip), pleaded guilty to two counts of fraud, contrary to Section 16A(1) of the Theft Ordinance.
Acting Principal Magistrate Ms Peony Wong Nga-yan adjourned the case to June 29 for sentence, pending the defendant’s background and community service order reports. The defendant was remanded in custody of the Correctional Services Department.
The court heard that at the material time, Hong Yip was the facilities management services provider of HKCC. The defendant was posted by Hong Yip to the HKCC as the supervisor of the repair and maintenance works of its Hung Hom Bay campus and West Kowloon campus.
The defendant was entrusted by the HKCC to provide procurement support, including placing purchase orders with suppliers and making payments to them directly. He had to follow the guidelines of Hong Yip and the HKCC, and declare any conflict of interest when performing his duties.
In June 2017, the defendant set up Mulan Trading Company (Mulan). His mother subsequently became the sole proprietor of the company in late February 2018. At the material time, the defendant was the sole signatory of Mulan’s bank account.
Between December 2017 and September 2019, HKCC had placed 54 direct purchase orders with Mulan. In all the summaries of invoices concerned, the defendant had failed to disclose his own interest or his mother’s interest in Mulan.
In late January 2019, the defendant had sought quotations for procuring 150 sets of lighting tubes from three suppliers. Among the suppliers was Mulan, which offered the lowest bid. The defendant declared that he had no conflict of interest in the procurement and recommended to accept Mulan’s bid.
Believing that the defendant had no conflict of interest in Mulan, PolyU approved the 54 direct purchases and released payments totalling over $520,000 to Mulan, and engaged Mulan for procuring the 150 sets of lighting tubes at about $30,000.
Had Hong Yip and the HKCC known that the defendant had conflict of interest in Mulan, they would not have processed the above direct purchases and lighting tubes procurement.
The PolyU, the HKCC and Hong Yip had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by ICAC officer Issac Chong.
Dillion Leung Ka-wah, 46, former chief maintenance engineer of Hong Yip Service Company Limited (Hong Yip), pleaded guilty to two counts of fraud, contrary to Section 16A(1) of the Theft Ordinance.
Acting Principal Magistrate Ms Peony Wong Nga-yan adjourned the case to June 29 for sentence, pending the defendant’s background and community service order reports. The defendant was remanded in custody of the Correctional Services Department.
The court heard that at the material time, Hong Yip was the facilities management services provider of HKCC. The defendant was posted by Hong Yip to the HKCC as the supervisor of the repair and maintenance works of its Hung Hom Bay campus and West Kowloon campus.
The defendant was entrusted by the HKCC to provide procurement support, including placing purchase orders with suppliers and making payments to them directly. He had to follow the guidelines of Hong Yip and the HKCC, and declare any conflict of interest when performing his duties.
In June 2017, the defendant set up Mulan Trading Company (Mulan). His mother subsequently became the sole proprietor of the company in late February 2018. At the material time, the defendant was the sole signatory of Mulan’s bank account.
Between December 2017 and September 2019, HKCC had placed 54 direct purchase orders with Mulan. In all the summaries of invoices concerned, the defendant had failed to disclose his own interest or his mother’s interest in Mulan.
In late January 2019, the defendant had sought quotations for procuring 150 sets of lighting tubes from three suppliers. Among the suppliers was Mulan, which offered the lowest bid. The defendant declared that he had no conflict of interest in the procurement and recommended to accept Mulan’s bid.
Believing that the defendant had no conflict of interest in Mulan, PolyU approved the 54 direct purchases and released payments totalling over $520,000 to Mulan, and engaged Mulan for procuring the 150 sets of lighting tubes at about $30,000.
Had Hong Yip and the HKCC known that the defendant had conflict of interest in Mulan, they would not have processed the above direct purchases and lighting tubes procurement.
The PolyU, the HKCC and Hong Yip had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by ICAC officer Issac Chong.