Duo admit fraud over airline staff discount air tickets

2016-3-11

A former cargo sales executive of an airline company and his friend today (Friday) admitted at the Kowloon City Magistracy an ICAC charge of conspiracy to defraud the company in relation to the purchase of two staff discount round-trip air tickets to Taipei and Seoul.

Chu Kai-fai, 27, a former cargo sales executive of Hong Kong Airlines Limited (HKA), and Chu Man-wa, 28, an account clerk, who were charged on Wednesday, pleaded guilty to a joint charge of conspiracy to defraud, contrary to Common Law.

Principal Magistrate Mr Peter Law Tak-chuen remanded Chu Kai-fai in custody of the Correctional Services Department until March 24 this year for sentence, pending community service order and probation reports.

Chu Man-wa had her sentencing adjourned until March 23 this year. She was granted cash bail of $5,000 and ordered not to leave Hong Kong.

The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offence of conspiracy to defraud.

The court heard that at the material time, Chu Kai-fai was a cargo sales executive of HKA, while Chu Man-wa was his friend.

HKA allowed its employees to buy air tickets of HKA and its sister company, Hong Kong Express Airways Limited (HKEA), at a staff discount rate ranging from 80 per cent to 95.5 per cent. Each employee could nominate eight direct family members, including siblings, and a friend to enjoy this benefit.

In 2014, Chu Kai-fai nominated Chu Man-wa to enjoy staff discount tickets by naming the latter as his sibling, namely elder sister.

To support the application, Chu Kai-fai uploaded his own birth certificate and a forged birth certificate of Chu Man-wa onto the computer system of HKA, with the names of their parents identical.

Believing that the birth certificates uploaded by Chu Kai-fai were genuine, and Chu Kai-fai and Chu Man-wa were siblings, the administration officer of HKA approved the application.

The court heard that on February 27 and April 22, 2014, Chu Kai-fai purchased Chu Man-wa a round-trip ticket to Taipei and another round-trip ticket to Seoul at $440 and $600 respectively.

Chu Kai-fai and Chu Man-wa were subsequently arrested by ICAC officers. When interviewed under caution, Chu Kai-fai admitted having nominated Chu Man-wa, who had no blood relation with him as an eligible person to enjoy staff discount tickets.

As Chu Kai-fai had already promised to nominate another friend to enjoy the benefit, Chu Man-wa suggested that Chu Kai-fai should nominate her as his sister, and falsify her birth certificate in order to show that their parents were identical.

When interviewed under caution by ICAC officers, Chu Man-wa admitted that she had sent an image of her birth certificate to Chu Kai-fai for editing.

Based on the discount rate of 80 per cent, Chu Man-wa had unlawfully benefited a total sum of $4,160 by purchasing the two discount air tickets, the court was told.

HKA had rendered full assistance to the ICAC during its investigation.

The prosecution was today represented by ICAC officer Eastman Tang.
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