Ex-CHP consultant charged by ICAC jailed for 31 months for MIPO and fraud involving HK$4.2m service fees from overseas health organisations
2022-6-17
A former consultant of the Centre for Health Protection (CHP), charged by the ICAC, was today (June 17) sentenced to 31 months’ imprisonment at the District Court for misconduct in public office (MIPO) and fraud by abusing his official capacity for personal gain in tuberculosis (TB) drug testing and other services, worth totalling over HK$4.2 million, provided by the CHP to three international and overseas health organisations.
Joseph Kam Kai-man, 64, former Consultant Medical Microbiologist of the CHP of the Department of Health (DH), earlier pleaded guilty to six charges – four of MIPO, contrary to the Common Law; and two of fraud, contrary to Section 16A(1) of the Theft Ordinance.
In sentencing, Deputy Judge Ms Katherine Lo Kit-yee said there was a serious breach of trust which lasted a long period and involved a substantial amount of money. She took a starting point of five and a half years’ imprisonment and reduced the defendant’s jail term to 31 months in view of his guilty plea, contributions to public health in the past, and making a restitution to the DH.
The case arose from a corruption complaint referred by the DH. The ICAC is grateful to a number of international and local law enforcement authorities, medical organisations, etc. from Asia, Europe and the Americas, including the World Health Organization (WHO), the National Institute of Infectious Diseases (NIID) and the Foundation for Innovative New Diagnostics (FIND), for their valuable assistance to the Commission during its investigation into the case such as arranging interviews with overseas witnesses in and outside Hong Kong.
The defendant joined the DH in 1984 and assumed the post of Consultant Medical Microbiologist since 1997. The above offences took place between September 2005 and March 2014. During the eight and a half years, the defendant chiefly worked at the Public Health Laboratory Services Branch of the CHP. He was in charge of a number of laboratories, including the Hong Kong Tuberculosis Reference Laboratory (HKTRL) operated by the DH, which was recognised by the WHO as a supranational reference laboratory for conducting anti-TB drug susceptibility testing.
The defendant admitted that he had wilfully misconducted himself in the course of or in relation to his public office without reasonable excuse or justification. On different occasions, he had made false representations to the WHO, the NIID and the FIND and their representatives that the Hong Kong Association of Medical Microbiologists (HKAMM) set up by him was a public institution which was the same as the DH, a working partner of the HKTRL or a non-profit agency equivalent to the HKTRL. He also falsely claimed that he had the authority of the DH or the HKTRL to enter into services agreements with the three organisations. Afterwards, he arranged the HKTRL to provide the relevant services to the three organisations and received payments from them through the HKAMM purportedly on behalf of the DH and the HKTRL.
The NIID, which conducted research on infectious diseases and developed vaccines, was a research institute attached to the Ministry of Health, Labour and Welfare of Japan. The FIND was a Switzerland-based non-profit organisation which supported the development of and access to diagnostics for infectious diseases in low-resource settings.
ICAC inquiries revealed that the HKAMM was a non-profit making organisation set up in 1992 by the defendant and other local microbiologists upon his invitation. The defendant was its chairman between 1992 and 1999. Since then, he was in sole control of a bank account opened in the name of the HKAMM.
The court heard that the defendant subsequently received through the above bank account grants totalling JPY15 million (about HK$1.28 million) from the NIID for organising seven workshops and a meeting relating to the tracking of foodborne infections.
In addition, the defendant entered into three agreements with the WHO and signed two memoranda of understanding (MoUs) with the FIND, and received services fees of about US$64,000 (about HK$500,000) and about US$240,000 (about HK$1.86 million) respectively from the two organisations for HKTRL’s provision of anti-TB drug susceptibility testing services and relevant training and technical assistance.
However, the defendant in fact did not have the DH’s approval for entering into and signing the above agreements and MoUs with those organisations. He subsequently caused staff members of the DH to organise events and provide services for those organisations without disclosing to the DH that he had received the grants and service fees from the organisations through the above bank account.
The defendant started his pre-retirement leave in late September 2012 and retired from the DH in mid-April 2013. ICAC inquiries also revealed that during the pre-retirement leave, he had falsely represented to a representative of the WHO that the HKAMM was a “working partner” of the HKTRL, which had no independent bank account to receive payments from the WHO.
As a result, the defendant induced the WHO representative to enter into three other agreements and transfer sums totalling about US$80,000 (about HK$620,000) in respect of the agreements on training and anti-TB drug susceptibility testing into the above bank account controlled by the defendant.
The prosecution was today represented by prosecuting counsel Newman Wong and Leon Chan, assisted by ICAC officer Cressida To.
Joseph Kam Kai-man, 64, former Consultant Medical Microbiologist of the CHP of the Department of Health (DH), earlier pleaded guilty to six charges – four of MIPO, contrary to the Common Law; and two of fraud, contrary to Section 16A(1) of the Theft Ordinance.
In sentencing, Deputy Judge Ms Katherine Lo Kit-yee said there was a serious breach of trust which lasted a long period and involved a substantial amount of money. She took a starting point of five and a half years’ imprisonment and reduced the defendant’s jail term to 31 months in view of his guilty plea, contributions to public health in the past, and making a restitution to the DH.
The case arose from a corruption complaint referred by the DH. The ICAC is grateful to a number of international and local law enforcement authorities, medical organisations, etc. from Asia, Europe and the Americas, including the World Health Organization (WHO), the National Institute of Infectious Diseases (NIID) and the Foundation for Innovative New Diagnostics (FIND), for their valuable assistance to the Commission during its investigation into the case such as arranging interviews with overseas witnesses in and outside Hong Kong.
The defendant joined the DH in 1984 and assumed the post of Consultant Medical Microbiologist since 1997. The above offences took place between September 2005 and March 2014. During the eight and a half years, the defendant chiefly worked at the Public Health Laboratory Services Branch of the CHP. He was in charge of a number of laboratories, including the Hong Kong Tuberculosis Reference Laboratory (HKTRL) operated by the DH, which was recognised by the WHO as a supranational reference laboratory for conducting anti-TB drug susceptibility testing.
The defendant admitted that he had wilfully misconducted himself in the course of or in relation to his public office without reasonable excuse or justification. On different occasions, he had made false representations to the WHO, the NIID and the FIND and their representatives that the Hong Kong Association of Medical Microbiologists (HKAMM) set up by him was a public institution which was the same as the DH, a working partner of the HKTRL or a non-profit agency equivalent to the HKTRL. He also falsely claimed that he had the authority of the DH or the HKTRL to enter into services agreements with the three organisations. Afterwards, he arranged the HKTRL to provide the relevant services to the three organisations and received payments from them through the HKAMM purportedly on behalf of the DH and the HKTRL.
The NIID, which conducted research on infectious diseases and developed vaccines, was a research institute attached to the Ministry of Health, Labour and Welfare of Japan. The FIND was a Switzerland-based non-profit organisation which supported the development of and access to diagnostics for infectious diseases in low-resource settings.
ICAC inquiries revealed that the HKAMM was a non-profit making organisation set up in 1992 by the defendant and other local microbiologists upon his invitation. The defendant was its chairman between 1992 and 1999. Since then, he was in sole control of a bank account opened in the name of the HKAMM.
The court heard that the defendant subsequently received through the above bank account grants totalling JPY15 million (about HK$1.28 million) from the NIID for organising seven workshops and a meeting relating to the tracking of foodborne infections.
In addition, the defendant entered into three agreements with the WHO and signed two memoranda of understanding (MoUs) with the FIND, and received services fees of about US$64,000 (about HK$500,000) and about US$240,000 (about HK$1.86 million) respectively from the two organisations for HKTRL’s provision of anti-TB drug susceptibility testing services and relevant training and technical assistance.
However, the defendant in fact did not have the DH’s approval for entering into and signing the above agreements and MoUs with those organisations. He subsequently caused staff members of the DH to organise events and provide services for those organisations without disclosing to the DH that he had received the grants and service fees from the organisations through the above bank account.
The defendant started his pre-retirement leave in late September 2012 and retired from the DH in mid-April 2013. ICAC inquiries also revealed that during the pre-retirement leave, he had falsely represented to a representative of the WHO that the HKAMM was a “working partner” of the HKTRL, which had no independent bank account to receive payments from the WHO.
As a result, the defendant induced the WHO representative to enter into three other agreements and transfer sums totalling about US$80,000 (about HK$620,000) in respect of the agreements on training and anti-TB drug susceptibility testing into the above bank account controlled by the defendant.
The prosecution was today represented by prosecuting counsel Newman Wong and Leon Chan, assisted by ICAC officer Cressida To.