Then director of NGO jailed for four and a half years for fraud over $10m EDB grant, wife wanted by ICAC
2024-5-28
A then director of a non-governmental organisation (NGO), charged by the ICAC, was today (May 28) sentenced to four and a half years in jail at the District Court for conspiring with a then manager of the NGO to deceive the Education Bureau (EDB) into granting funds totalling over $10 million in relation to applications for organising after-school activities for primary and secondary school students. His wife was also wanted by the ICAC for her role in the scheme.
Ho Hin-wah, 55, then director of School Support Association Limited (SSAL), received a jail term of four and a half years. He was earlier convicted of three charges – two of conspiracy to defraud, contrary to the Common Law; and one of conspiracy to use copies of false instruments, contrary to Sections 74 and 159A of the Crimes Ordinance.
Co-defendant Mandy Man Hoi-yan, 34, then manager of SSAL, earlier pleaded guilty to two of the conspiracy to defraud charges. She was sentenced to one year and 10 months’ imprisonment today.
In sentencing, Judge Mr Isaac Tam Sze-lok said the offences in the present case, which spanned for two years and involved a substantial amount of money, were serious in nature. An immediate custodial sentence of four and a half years was imposed on Ho, having considered his role as the mastermind of the scheme and his personal gain. Meanwhile, jail term of Man was reduced in view of her guilty plea and assistance to the prosecution during trial.
The Judge had earlier approved the prosecution’s application for a confiscation order and adjourned the relevant hearing to July 5.
The court heard that at the material time, Ho and Man were respectively the director and manager of SSAL. Ho’s wife Cho Ying was the director of Childcare Association Limited (CAL). Both SSAL and CAL were NGOs approved by the EDB to implement the “School-based After-school Learning and Support Programmes – Community-based Projects” (the Programmes), which aimed at improving learning effectiveness of needy students and broadening their learning experiences outside classrooms by providing after-school activities at primary and secondary schools.
In the two school years of 2015/16 and 2016/17, the EDB granted funds of over $6.5 million and over $3.8 million to SSAL and CAL respectively under the Programmes for implementing 72 projects at a number of schools. SSAL and CAL were required to comply with the EDB’s approved fundings and the relevant terms, including those in relation to tutors’ hourly rate, contract arrangements, etc.
Between March 2015 and April 2017, Ho and Man conspired with staff of SSAL and CAL’s director to defraud the EDB by making false representations that the part-time tutors engaged in the 72 projects were contracted either with SSAL or CAL at an hourly rate of either $165 or $195.
Between October 2016 and January 2017, Ho also conspired with his wife Cho to use copies of instruments, with the intention of inducing the EDB to accept them as genuine. The false instruments were bank statements for two bank accounts of SSAL and CAL and 332 cheques drawn from the two bank accounts.
The ICAC investigation arose from a corruption complaint. Enquiries revealed that Ho, Man, Cho and the abovementioned people made false representations and showed bogus contracts of the tutors and copies of the false bank statements and cheques as payment records during supervisory visits to the schools by EDB officers and in the relevant reports submitted to the EDB.
ICAC enquiries also revealed that the tutors were in fact contracted with another organisation at hourly rates ranging from $60 to $150. Had the EDB known that SSAL and CAL had provided any false information and records during the implementations of the Programmes, the EDB would have withheld the release of grants, rejected the applications or asked for refunds of any paid grants.
As Cho had already left Hong Kong when legal advice from the Department of Justice for charging Ho, Cho and Man was received, a warrant for the arrest of Cho was issued by a Magistrate upon the application made by the ICAC.
The EDB had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Wong Hay-yiu, assisted by ICAC officer Billy Cheng.
The ICAC has all along been working closely with government departments to provide corruption prevention guidelines and advice on administration of Government funding schemes so as to enhance their integrity management and anti-corruption safeguards. In addition, to assist NGOs to strengthen their corruption prevention capabilities, the ICAC has compiled the Corruption Prevention Guide on Governance and Internal Control for NGOs, covering the corruption risks in key operational areas such as procurement, financial management and provision of services, and providing corresponding corruption prevention measures. NGOs can download the Guide at the ICAC’s Corruption Prevention Advisory Service Web Portal (cpas.icac.hk).
Ho Hin-wah, 55, then director of School Support Association Limited (SSAL), received a jail term of four and a half years. He was earlier convicted of three charges – two of conspiracy to defraud, contrary to the Common Law; and one of conspiracy to use copies of false instruments, contrary to Sections 74 and 159A of the Crimes Ordinance.
Co-defendant Mandy Man Hoi-yan, 34, then manager of SSAL, earlier pleaded guilty to two of the conspiracy to defraud charges. She was sentenced to one year and 10 months’ imprisonment today.
In sentencing, Judge Mr Isaac Tam Sze-lok said the offences in the present case, which spanned for two years and involved a substantial amount of money, were serious in nature. An immediate custodial sentence of four and a half years was imposed on Ho, having considered his role as the mastermind of the scheme and his personal gain. Meanwhile, jail term of Man was reduced in view of her guilty plea and assistance to the prosecution during trial.
The Judge had earlier approved the prosecution’s application for a confiscation order and adjourned the relevant hearing to July 5.
The court heard that at the material time, Ho and Man were respectively the director and manager of SSAL. Ho’s wife Cho Ying was the director of Childcare Association Limited (CAL). Both SSAL and CAL were NGOs approved by the EDB to implement the “School-based After-school Learning and Support Programmes – Community-based Projects” (the Programmes), which aimed at improving learning effectiveness of needy students and broadening their learning experiences outside classrooms by providing after-school activities at primary and secondary schools.
In the two school years of 2015/16 and 2016/17, the EDB granted funds of over $6.5 million and over $3.8 million to SSAL and CAL respectively under the Programmes for implementing 72 projects at a number of schools. SSAL and CAL were required to comply with the EDB’s approved fundings and the relevant terms, including those in relation to tutors’ hourly rate, contract arrangements, etc.
Between March 2015 and April 2017, Ho and Man conspired with staff of SSAL and CAL’s director to defraud the EDB by making false representations that the part-time tutors engaged in the 72 projects were contracted either with SSAL or CAL at an hourly rate of either $165 or $195.
Between October 2016 and January 2017, Ho also conspired with his wife Cho to use copies of instruments, with the intention of inducing the EDB to accept them as genuine. The false instruments were bank statements for two bank accounts of SSAL and CAL and 332 cheques drawn from the two bank accounts.
The ICAC investigation arose from a corruption complaint. Enquiries revealed that Ho, Man, Cho and the abovementioned people made false representations and showed bogus contracts of the tutors and copies of the false bank statements and cheques as payment records during supervisory visits to the schools by EDB officers and in the relevant reports submitted to the EDB.
ICAC enquiries also revealed that the tutors were in fact contracted with another organisation at hourly rates ranging from $60 to $150. Had the EDB known that SSAL and CAL had provided any false information and records during the implementations of the Programmes, the EDB would have withheld the release of grants, rejected the applications or asked for refunds of any paid grants.
As Cho had already left Hong Kong when legal advice from the Department of Justice for charging Ho, Cho and Man was received, a warrant for the arrest of Cho was issued by a Magistrate upon the application made by the ICAC.
The EDB had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Wong Hay-yiu, assisted by ICAC officer Billy Cheng.
The ICAC has all along been working closely with government departments to provide corruption prevention guidelines and advice on administration of Government funding schemes so as to enhance their integrity management and anti-corruption safeguards. In addition, to assist NGOs to strengthen their corruption prevention capabilities, the ICAC has compiled the Corruption Prevention Guide on Governance and Internal Control for NGOs, covering the corruption risks in key operational areas such as procurement, financial management and provision of services, and providing corresponding corruption prevention measures. NGOs can download the Guide at the ICAC’s Corruption Prevention Advisory Service Web Portal (cpas.icac.hk).