ICAC statement
2016-1-27
This morning a report concerning the criminal investigation into allegations made against Mr Timothy Tong Hin-ming, former Commissioner of the ICAC, was tabled before the independent Operations Review Committee (ORC) which oversees all ICAC investigations for consideration. The ORC was informed that pursuant to legal advice given by the Director of Public Prosecutions (DPP), no criminal proceedings against Mr Tong would be initiated, and of the reasons for the decision. After considering the report and the legal advice, the ORC endorsed the recommendation that no further investigative action in relation to suspected criminal offences would be taken by the ICAC.
While a press statement will be issued by the Department of Justice (DoJ) setting out the main reasons leading to the decision of not initiating any criminal proceedings against Mr Tong, the ICAC wishes to state the following:
The investigation
In May 2013, the ICAC Commissioner established and led an independent Special Investigation Unit (SIU) to conduct an investigation into criminal allegations made against Mr Tong. The SIU reported directly to the Commissioner and comprised serving and former investigating officers seconded from the Internal Investigation and Monitoring Group of the ICAC. The officers joining the SIU had no actual or perceived conflict of interest arising from the case.
The scope of the investigation was wide and comprehensive. The amount of documents involved were voluminous and a substantial number of witnesses were interviewed.
To ensure impartiality of the investigation, the progress of investigation and findings were reported to the ORC in each of its scheduled meetings since May 2013. During the course of the investigation, the SIU had sought legal advice from DPP. The DoJ had also instructed an overseas Queen’s Counsel to provide an independent opinion in this case.
In conducting the investigation, the ICAC had upheld the principles of fairness and impartiality and abided by the system of checks and balances which has proved effective over the years. In accordance with the established practice, the Commission had also maintained confidentiality of matters revealed during the course of the investigation.
Inquiries conducted by other committees
Inquiries were conducted by the following committees in parallel to the criminal investigation:
• Independent Review Committee (IRC) on ICAC’s Regulatory Systems and Procedures for Handling Official Entertainment, Gifts and Duty Visits;
• Public Accounts Committee of the Legislative Council (Legco); and
• Select Committee of the Legco.
The ICAC had rendered full assistance to those inquiries. Provided that the criminal investigation would not be prejudiced, the Commission had provided information required and its officers had attended public hearings and interviews by members of the IRC.
Improvement measures
The Director of Audit’s Report No. 60 and reports issued by the aforesaid committees identified a number of non-compliances and inadequacies in ICAC’s rules and regulations, and provided valuable recommendations. Efforts were made to rectify those non-compliances and inadequacies. As for individual cases which might involve violation of rules and regulations by officers, disciplinary and/or administrative action will be considered in accordance with established guidelines.
Pursuant to the aforesaid recommendations, the ICAC has tightened up control on spending on various areas, including official entertainment, the bestowing of gifts as well as overseas duty visits. The Commission has also implemented measures to enhance its internal governance and monitoring, including the establishment of an Internal Audit Unit (IAU) staffed by officers with professional qualifications in accountancy. The unit will continue to conduct reviews on its regulatory procedures and internal guidelines from time to time.
Some of the measures taken by the ICAC are highlighted as follows:
(i) Only guests and ICAC officers directly related to the context of official business should be considered for invitation for/participation in official entertainment. ICAC internal guidelines also require that expenditure items (e.g. wine, dessert, snacks, etc.) incurred before, during or after the same event should be counted as part of the total entertainment expenditure.
(ii) All hard liquor are banned in official entertainment.
(iii) The ceilings of entertainment per head are same as or lower than the prescribed limits set by the government. The Commissioner’s approval should be sought with justification should the expenditure exceed the ceiling rate.
(iv) The duration of duty visits should be as short as possible, covering only the programmes pertaining to the purposes of the official visits. Officers concerned should avoid participating in any tour programmes arranged by hosting organisations.
(v) As regards the disposal of mileage awards earned by officers in their duty travels, the ICAC has adopted regulations similar to those of the government. Arising from this investigation, officers have been reminded to report their flight awards earned in duty travels and the first call on the use of such mileage awards must be for official purposes. Where possible, flight awards will be used to provide a passage for another officer for duty travel, overseas posting or training or to upgrade a passage. If an award is not expected to be used for subsequent official travel before the expiry date of the award, prior approval for using the award for private purposes must be sought from relevant supervisors via a designated officer who will check, among other things, whether the award has been duly reported and whether it is expected to be used for official purposes before its expiry date. The Commissioner is required to report to the Chief Executive’s Office should he/she wish to use the mileage awards for private purposes.
(vi) ICAC officers should avoid as far as possible exchanging gifts/souvenirs with other organisations. Where the exchange of gifts/souvenirs is unavoidable, officers should only present one standard souvenir inscribed with the ICAC logo to the organisation concerned. No gifts/souvenirs should be given on a personal basis.
(vii) The IAU is responsible for conducting internal audits of the Commission other than the Operations Department, examining expenses to ensure compliance with ICAC and government regulations, and strengthening system controls. The IAU reports directly to the Commissioner and the Advisory Committee on Corruption (ACOC). Meanwhile, the Operations Department will continue with its established internal audit system and reports the audit findings to ACOC from time to time.
(viii) The Commissioner is required to report to the ACOC details of non-standard gifts/souvenirs which are presented for official purposes, and details of official entertainment which exceeds the spending limits.
(ix) A comprehensive review of all ICAC internal regulations is continuing.
Concluding remarks
Public support is essential to ICAC’s work, without which Hong Kong would not have become one of the most corruption-free places in the world as recognised by the international arena. The community rightly expects a very high standard of integrity of ICAC officers who are at the forefront in defending this hard-earned reputation. The incident provided an opportunity for the ICAC to review comprehensively its rules and regulations, strengthen its internal control and demonstrate the Commission’s determination to strive for improvements. A latest independent survey reveals that the ICAC won the support from 97 per cent of the respondents. Members of the public may rest assure that the Commission will continue to carry out its anti-corruption duties professionally. Members of the public are urged to continue to support the ICAC’s work and report to the Commission should they come across corruption. With the community’s staunch backing, the Commission will continue to keep Hong Kong clean, just and fair.
While a press statement will be issued by the Department of Justice (DoJ) setting out the main reasons leading to the decision of not initiating any criminal proceedings against Mr Tong, the ICAC wishes to state the following:
The investigation
In May 2013, the ICAC Commissioner established and led an independent Special Investigation Unit (SIU) to conduct an investigation into criminal allegations made against Mr Tong. The SIU reported directly to the Commissioner and comprised serving and former investigating officers seconded from the Internal Investigation and Monitoring Group of the ICAC. The officers joining the SIU had no actual or perceived conflict of interest arising from the case.
The scope of the investigation was wide and comprehensive. The amount of documents involved were voluminous and a substantial number of witnesses were interviewed.
To ensure impartiality of the investigation, the progress of investigation and findings were reported to the ORC in each of its scheduled meetings since May 2013. During the course of the investigation, the SIU had sought legal advice from DPP. The DoJ had also instructed an overseas Queen’s Counsel to provide an independent opinion in this case.
In conducting the investigation, the ICAC had upheld the principles of fairness and impartiality and abided by the system of checks and balances which has proved effective over the years. In accordance with the established practice, the Commission had also maintained confidentiality of matters revealed during the course of the investigation.
Inquiries conducted by other committees
Inquiries were conducted by the following committees in parallel to the criminal investigation:
• Independent Review Committee (IRC) on ICAC’s Regulatory Systems and Procedures for Handling Official Entertainment, Gifts and Duty Visits;
• Public Accounts Committee of the Legislative Council (Legco); and
• Select Committee of the Legco.
The ICAC had rendered full assistance to those inquiries. Provided that the criminal investigation would not be prejudiced, the Commission had provided information required and its officers had attended public hearings and interviews by members of the IRC.
Improvement measures
The Director of Audit’s Report No. 60 and reports issued by the aforesaid committees identified a number of non-compliances and inadequacies in ICAC’s rules and regulations, and provided valuable recommendations. Efforts were made to rectify those non-compliances and inadequacies. As for individual cases which might involve violation of rules and regulations by officers, disciplinary and/or administrative action will be considered in accordance with established guidelines.
Pursuant to the aforesaid recommendations, the ICAC has tightened up control on spending on various areas, including official entertainment, the bestowing of gifts as well as overseas duty visits. The Commission has also implemented measures to enhance its internal governance and monitoring, including the establishment of an Internal Audit Unit (IAU) staffed by officers with professional qualifications in accountancy. The unit will continue to conduct reviews on its regulatory procedures and internal guidelines from time to time.
Some of the measures taken by the ICAC are highlighted as follows:
(i) Only guests and ICAC officers directly related to the context of official business should be considered for invitation for/participation in official entertainment. ICAC internal guidelines also require that expenditure items (e.g. wine, dessert, snacks, etc.) incurred before, during or after the same event should be counted as part of the total entertainment expenditure.
(ii) All hard liquor are banned in official entertainment.
(iii) The ceilings of entertainment per head are same as or lower than the prescribed limits set by the government. The Commissioner’s approval should be sought with justification should the expenditure exceed the ceiling rate.
(iv) The duration of duty visits should be as short as possible, covering only the programmes pertaining to the purposes of the official visits. Officers concerned should avoid participating in any tour programmes arranged by hosting organisations.
(v) As regards the disposal of mileage awards earned by officers in their duty travels, the ICAC has adopted regulations similar to those of the government. Arising from this investigation, officers have been reminded to report their flight awards earned in duty travels and the first call on the use of such mileage awards must be for official purposes. Where possible, flight awards will be used to provide a passage for another officer for duty travel, overseas posting or training or to upgrade a passage. If an award is not expected to be used for subsequent official travel before the expiry date of the award, prior approval for using the award for private purposes must be sought from relevant supervisors via a designated officer who will check, among other things, whether the award has been duly reported and whether it is expected to be used for official purposes before its expiry date. The Commissioner is required to report to the Chief Executive’s Office should he/she wish to use the mileage awards for private purposes.
(vi) ICAC officers should avoid as far as possible exchanging gifts/souvenirs with other organisations. Where the exchange of gifts/souvenirs is unavoidable, officers should only present one standard souvenir inscribed with the ICAC logo to the organisation concerned. No gifts/souvenirs should be given on a personal basis.
(vii) The IAU is responsible for conducting internal audits of the Commission other than the Operations Department, examining expenses to ensure compliance with ICAC and government regulations, and strengthening system controls. The IAU reports directly to the Commissioner and the Advisory Committee on Corruption (ACOC). Meanwhile, the Operations Department will continue with its established internal audit system and reports the audit findings to ACOC from time to time.
(viii) The Commissioner is required to report to the ACOC details of non-standard gifts/souvenirs which are presented for official purposes, and details of official entertainment which exceeds the spending limits.
(ix) A comprehensive review of all ICAC internal regulations is continuing.
Concluding remarks
Public support is essential to ICAC’s work, without which Hong Kong would not have become one of the most corruption-free places in the world as recognised by the international arena. The community rightly expects a very high standard of integrity of ICAC officers who are at the forefront in defending this hard-earned reputation. The incident provided an opportunity for the ICAC to review comprehensively its rules and regulations, strengthen its internal control and demonstrate the Commission’s determination to strive for improvements. A latest independent survey reveals that the ICAC won the support from 97 per cent of the respondents. Members of the public may rest assure that the Commission will continue to carry out its anti-corruption duties professionally. Members of the public are urged to continue to support the ICAC’s work and report to the Commission should they come across corruption. With the community’s staunch backing, the Commission will continue to keep Hong Kong clean, just and fair.