Company director guilty of $1m HA trolley contract fraud
2016-3-18
The sole director of a sourcing company, charged by the ICAC, was today (Friday) convicted at the Fanling Magistracy of fraud by furnishing false information to induce the Hospital Authority (HA) to award a trolley procurement contract worth over $1 million to her company.
Lo Wai-chi, 52, sole director cum shareholder of L & L Global Sourcing Limited (L&L), was found guilty of one count of fraud, contrary to Section 16A of the Theft Ordinance.
Magistrate Mr Wong Wai-kuen adjourned the case to April 5 this year for sentence, pending a background report. The defendant was remanded in custody of the Correctional Services Department.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offence.
The court heard that at the material time, the defendant was the sole director cum shareholder of L&L.
In 2013, the New Territories East Cluster (NTEC) of HA conducted a tendering exercise for stainless steel linen trolleys to be used in the seven hospitals under its cluster. Four companies, including L&L, submitted tenders.
The NTEC later decided to amend the specifications of the linen trolleys for occupational safety reasons, resulting in another tendering exercise. Apart from three companies, L&L submitted its tender again.
The court heard that on November 1, 2013, the Cluster Tender Board of NTEC accepted the recommendation of its Tender Assessment Panel (TAP), and awarded the contract to L&L at the price of over $1.28 million.
In the two tenders submitted by L&L, the defendant falsely represented that L&L would be the manufacturer of stainless steel linen trolleys if its bid was accepted by HA, and had a manufacturing facility in Shenzhen.
L&L also attached a summary to the tender, claiming that the company started off in China and the originating company, L & L Global Sourcing Limited – China, had supplied equipment and stainless steel products to the Grantham Hospital.
In vetting the tender submitted by L&L, a staff of the Procurements & Materials Management of HA contacted the Grantham Hospital, but was told that L&L had never supplied any goods to the hospital. It was also confirmed that the linen trolleys provided by L&L to the NTEC were manufactured by a stainless steel company in Shenzhen.
Had the TAP known that L&L deliberately submitted false information to the HA, the contract would not have been awarded to L&L, the court was told.
HA had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Steven Kwan, assisted by ICAC officer Franki Law.
Lo Wai-chi, 52, sole director cum shareholder of L & L Global Sourcing Limited (L&L), was found guilty of one count of fraud, contrary to Section 16A of the Theft Ordinance.
Magistrate Mr Wong Wai-kuen adjourned the case to April 5 this year for sentence, pending a background report. The defendant was remanded in custody of the Correctional Services Department.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offence.
The court heard that at the material time, the defendant was the sole director cum shareholder of L&L.
In 2013, the New Territories East Cluster (NTEC) of HA conducted a tendering exercise for stainless steel linen trolleys to be used in the seven hospitals under its cluster. Four companies, including L&L, submitted tenders.
The NTEC later decided to amend the specifications of the linen trolleys for occupational safety reasons, resulting in another tendering exercise. Apart from three companies, L&L submitted its tender again.
The court heard that on November 1, 2013, the Cluster Tender Board of NTEC accepted the recommendation of its Tender Assessment Panel (TAP), and awarded the contract to L&L at the price of over $1.28 million.
In the two tenders submitted by L&L, the defendant falsely represented that L&L would be the manufacturer of stainless steel linen trolleys if its bid was accepted by HA, and had a manufacturing facility in Shenzhen.
L&L also attached a summary to the tender, claiming that the company started off in China and the originating company, L & L Global Sourcing Limited – China, had supplied equipment and stainless steel products to the Grantham Hospital.
In vetting the tender submitted by L&L, a staff of the Procurements & Materials Management of HA contacted the Grantham Hospital, but was told that L&L had never supplied any goods to the hospital. It was also confirmed that the linen trolleys provided by L&L to the NTEC were manufactured by a stainless steel company in Shenzhen.
Had the TAP known that L&L deliberately submitted false information to the HA, the contract would not have been awarded to L&L, the court was told.
HA had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Steven Kwan, assisted by ICAC officer Franki Law.