Ex-HKUST Adjunct Associate Professor wanted by ICAC over $4m procurement fraud
2022-10-10
A Magistrate issued a warrant for the arrest of a former Adjunct Associate Professor of the Hong Kong University of Science and Technology (HKUST), who is wanted by the ICAC for allegedly conspiring with two others, charged earlier, to conceal his interest in two suppliers in relation to various procurements that involved payments totalling about $4 million.
Yeung Lam-lung, 58, former Adjunct Associate Professor of the Department of Chemistry of HKUST, faces a total of 17 charges – three of conspiracy to defraud, contrary to Common Law; and 14 of fraud, contrary to Section 16A(1) of the Theft Ordinance.
Au Yeung Siu-fung, 42, sole director and shareholder of Chun Fo (Asia) Pharmaceutical Co., Limited (CFPL); and Yeung Siu-on, 40, sole director and shareholder of PIT Limited (PITL), were also charged with the above offences in late September.
The alleged offences took place between September 2011 and February 2019. During the period, Yeung Lam-lung conducted 17 tendering and procurement exercises for HKUST and its subsidiary to purchase various laboratory equipment and testing services from CFPL and PITL in which he had direct or indirect financial interests.
In accordance with the regulations of HKUST, Adjunct Associate Professor Yeung Lam-lung was required to declare his conflict of interest with any suppliers before engaging them. Likewise, suppliers were required to declare whether any HKUST staff have any interest in them.
In late 2011, Yeung Siu-on became PITL’s sole director and shareholder. When CFPL was incorporated in mid-2012, Yeung Siu-on was its sole director and shareholder while Au Yeung Siu-fung took over the position in late 2012.
The conspiracy charges allege that Yeung Lam-lung had conspired with Au Yeung Siu-fung or Yeung Siu-on to defraud HKUST by concealing Yeung Lam-lung’s interest in CFPL and PITL while he had a duty to disclose any conflict of interest to the university, but instead, he induced it to engage CFPL and PITL in three of the 17 tendering and procurement exercises, and caused it to settle invoices of the two suppliers in full.
The remaining charges allege that Yeung Lam-lung, either with Au Yeung Siu-fung or Yeung Siu-on, induced HKUST or its subsidiary to engage CFPL or PITL in the other 14 tendering and procurement exercises by concealing his interest in the two suppliers.
The 17 tendering and procurement exercises involved payments totalling about $4 million.
The case arose from a corruption complaint. Upon completion of the investigation, legal advice was sought from the Department of Justice, which advised charging the trio. As Yeung Lam-lung had already left Hong Kong, a warrant for the arrest of him was issued by a Magistrate last Friday (October 7) upon the application made by the ICAC.
Au Yeung Siu-fung and Yeung Siu-on had their case adjourned to October 27 for mention.
HKUST has rendered full assistance to the ICAC during its investigation into the case.
Yeung Lam-lung, 58, former Adjunct Associate Professor of the Department of Chemistry of HKUST, faces a total of 17 charges – three of conspiracy to defraud, contrary to Common Law; and 14 of fraud, contrary to Section 16A(1) of the Theft Ordinance.
Au Yeung Siu-fung, 42, sole director and shareholder of Chun Fo (Asia) Pharmaceutical Co., Limited (CFPL); and Yeung Siu-on, 40, sole director and shareholder of PIT Limited (PITL), were also charged with the above offences in late September.
The alleged offences took place between September 2011 and February 2019. During the period, Yeung Lam-lung conducted 17 tendering and procurement exercises for HKUST and its subsidiary to purchase various laboratory equipment and testing services from CFPL and PITL in which he had direct or indirect financial interests.
In accordance with the regulations of HKUST, Adjunct Associate Professor Yeung Lam-lung was required to declare his conflict of interest with any suppliers before engaging them. Likewise, suppliers were required to declare whether any HKUST staff have any interest in them.
In late 2011, Yeung Siu-on became PITL’s sole director and shareholder. When CFPL was incorporated in mid-2012, Yeung Siu-on was its sole director and shareholder while Au Yeung Siu-fung took over the position in late 2012.
The conspiracy charges allege that Yeung Lam-lung had conspired with Au Yeung Siu-fung or Yeung Siu-on to defraud HKUST by concealing Yeung Lam-lung’s interest in CFPL and PITL while he had a duty to disclose any conflict of interest to the university, but instead, he induced it to engage CFPL and PITL in three of the 17 tendering and procurement exercises, and caused it to settle invoices of the two suppliers in full.
The remaining charges allege that Yeung Lam-lung, either with Au Yeung Siu-fung or Yeung Siu-on, induced HKUST or its subsidiary to engage CFPL or PITL in the other 14 tendering and procurement exercises by concealing his interest in the two suppliers.
The 17 tendering and procurement exercises involved payments totalling about $4 million.
The case arose from a corruption complaint. Upon completion of the investigation, legal advice was sought from the Department of Justice, which advised charging the trio. As Yeung Lam-lung had already left Hong Kong, a warrant for the arrest of him was issued by a Magistrate last Friday (October 7) upon the application made by the ICAC.
Au Yeung Siu-fung and Yeung Siu-on had their case adjourned to October 27 for mention.
HKUST has rendered full assistance to the ICAC during its investigation into the case.