Assistant General Manager of HKPost charged by ICAC sentenced for MIPO over conflict of interest in $4.2m contract
2024-1-5
A then Assistant General Manager of the Hongkong Post (HKPost), charged by the ICAC, was sentenced at the District Court today (January 5) after being convicted of misconduct in public office (MIPO) for concealing his conflicting interest when handling the tendering exercise of an online platform redevelopment project worth about $4.2 million which was subsequently awarded to a contractor operated by his cousin and cousin in-law.
Cheng Chun-kit, 45, then Assistant General Manager of the HKPost, was today found guilty of one count of MIPO, contrary to the Common Law, by Deputy Judge Ms Merinda Chow Yin-chu, and was sentenced to six months’ imprisonment, suspended for 18 months.
In sentencing, the Deputy Judge remarked that Cheng had an apparent conflict of interest in the present case. Having considered that the defendant had no monetary gain and the low risk of reoffending, a suspended sentence was imposed on him.
The court heard that in around mid-2016, the HKPost launched a “Redevelopment of On-line Shopping Platform Project” (the Project) to integrate its various online shopping platforms. At the material time, Cheng was an Assistant General Manager of the HKPost who headed its e-Services Development Section. He was responsible for assessing the estimated cost and overseeing the implementation of the Project.
When the e-Services Development Section was conducting market research on the budget proposal of the Project, Cheng asked his subordinate to approach Intimex Business Solutions Company Limited (Intimex) to discuss the requirements of the Project. Chow Oi-yee, shareholder cum Chief Executive Director of Intimex, was Cheng’s cousin, and Cheung Kin-hang, Chief Operating Officer of Intimex, and the Business Development Director of Intimex, were respectively Cheng’s cousin-in-law and cousin. Based on Cheng’s advice, Intimex subsequently gave a preliminary quotation for the Project.
In June 2017, the HKPost conducted a tendering exercise for the Project. Chow and Cheung attended a tender briefing hosted by Cheng and his subordinate. After submitting a tender, the couple attended the presentation and demonstration session to present the tender content of Intimex to the HKPost, while Cheng was present in the session.
The HKPost awarded the Project to Intimex at a contract sum of about $4.2 million in late September 2017. Afterwards, Cheng continued to oversee the implementation of the Project.
The HKPost required its staff to avoid and report any conflict of interest. An officer should refrain from taking part in the deliberation or decision-making process of a project if the officer’s private interest was involved, the court heard.
The ICAC investigation arose from a complaint. Enquiries revealed that Cheng had never declared to the HKPost that the three operators of Intimex were his relatives. Had the HKPost known of Cheng’s relationship with the trio, it would not allow Cheng to participate in the Project.
Co-defendants Chow and Cheung earlier pleaded guilty to one count of obtaining pecuniary advantage by deception. They were respectively sentenced to eight months and six months in jail, suspended for two years.
The HKPost had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by prosecuting counsel Alex Ng, assisted by ICAC officer Matt Cheung.
The ICAC reminds government officers who are responsible for handling government tendering exercises to uphold integrity in discharging their duties and properly handle conflict of interest, in order to safeguard the fairness of the tendering process. Concealing any conflict of interest in relation to one’s official duties to benefit himself or his associates may contravene the criminal law. It may constitute a breach of the Prevention of Bribery Ordinance if offering and accepting of bribes are involved.
Cheng Chun-kit, 45, then Assistant General Manager of the HKPost, was today found guilty of one count of MIPO, contrary to the Common Law, by Deputy Judge Ms Merinda Chow Yin-chu, and was sentenced to six months’ imprisonment, suspended for 18 months.
In sentencing, the Deputy Judge remarked that Cheng had an apparent conflict of interest in the present case. Having considered that the defendant had no monetary gain and the low risk of reoffending, a suspended sentence was imposed on him.
The court heard that in around mid-2016, the HKPost launched a “Redevelopment of On-line Shopping Platform Project” (the Project) to integrate its various online shopping platforms. At the material time, Cheng was an Assistant General Manager of the HKPost who headed its e-Services Development Section. He was responsible for assessing the estimated cost and overseeing the implementation of the Project.
When the e-Services Development Section was conducting market research on the budget proposal of the Project, Cheng asked his subordinate to approach Intimex Business Solutions Company Limited (Intimex) to discuss the requirements of the Project. Chow Oi-yee, shareholder cum Chief Executive Director of Intimex, was Cheng’s cousin, and Cheung Kin-hang, Chief Operating Officer of Intimex, and the Business Development Director of Intimex, were respectively Cheng’s cousin-in-law and cousin. Based on Cheng’s advice, Intimex subsequently gave a preliminary quotation for the Project.
In June 2017, the HKPost conducted a tendering exercise for the Project. Chow and Cheung attended a tender briefing hosted by Cheng and his subordinate. After submitting a tender, the couple attended the presentation and demonstration session to present the tender content of Intimex to the HKPost, while Cheng was present in the session.
The HKPost awarded the Project to Intimex at a contract sum of about $4.2 million in late September 2017. Afterwards, Cheng continued to oversee the implementation of the Project.
The HKPost required its staff to avoid and report any conflict of interest. An officer should refrain from taking part in the deliberation or decision-making process of a project if the officer’s private interest was involved, the court heard.
The ICAC investigation arose from a complaint. Enquiries revealed that Cheng had never declared to the HKPost that the three operators of Intimex were his relatives. Had the HKPost known of Cheng’s relationship with the trio, it would not allow Cheng to participate in the Project.
Co-defendants Chow and Cheung earlier pleaded guilty to one count of obtaining pecuniary advantage by deception. They were respectively sentenced to eight months and six months in jail, suspended for two years.
The HKPost had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by prosecuting counsel Alex Ng, assisted by ICAC officer Matt Cheung.
The ICAC reminds government officers who are responsible for handling government tendering exercises to uphold integrity in discharging their duties and properly handle conflict of interest, in order to safeguard the fairness of the tendering process. Concealing any conflict of interest in relation to one’s official duties to benefit himself or his associates may contravene the criminal law. It may constitute a breach of the Prevention of Bribery Ordinance if offering and accepting of bribes are involved.