In a recent law enforcement operation, the ICAC arrested five individuals, including the operators of two private care agencies, for their alleged roles in a subsidy scam in relation to the “Community Care Service Voucher Scheme for the Elderly” (CCSV Scheme) under the Social Welfare Department (SWD).

The ICAC investigation stemmed from a corruption complaint referred by the SWD, alleging that individuals had deceived the government into granting subsidies under the CCSV Scheme by corrupt means. Following intensive investigation, the Commission arrested two men and three women, aged between 27 and 57, last month.

Among the arrestees were two masterminds of the scam, namely a registered nurse and a registered occupational therapist. They each operate a private care agency. The remaining three arrestees were employees of one of the care agencies.

Various premises were searched by ICAC officers in the operation, including the offices of the two care agencies. Meanwhile, various exhibits were seized, including mobile phones and a large number of timesheets prepared under the CCSV Scheme.

The ICAC investigation revealed that the care agencies concerned had registered as recognised service providers under the CCSV Scheme. Making use of their background as healthcare professionals and their connections, the arrestees abetted members of the public to arrange the elderly to join the CCSV Scheme and made false representations to the SWD that the care agencies had provided home care and support services to the elderly so as to deceive the government into granting subsidies. The monthly subsidy of each applicant, which was up to over $10,000, was then split between the care agency and family members of the applicant.

It is also alleged that timesheets were falsified by individuals implicated in the present case to conceal the fact that the care agencies did not provide any services to the elderly at home or that the service hours provided were inadequate.

The ICAC investigation showed that at the material time, the two care agencies had provided home care and support services to about 20 to 200 elderly applicants under the CCSV Scheme each month and received subsidies totalling $18 million, with the sum swindled out of the scheme pending further investigation. As the inquiries are ongoing, further law enforcement actions will not be ruled out.

The ICAC has all along reviewed the practices and procedures of government departments to reduce the likelihood of corruption and related offences. The Commission does not tolerate the abuse of social welfare policy for personal gain and pocketing of public funds through deceptive means. In addition to law enforcement operation, the ICAC has proactively reviewed SWD’s relevant procedures of the CCSV Scheme and will further provide practical recommendations and guidelines to SWD to stamp out the recurrence of similar incidents.

The Commission also urged members of the public to stay vigilant against abetment to engage in illicit activities.

The SWD rendered full assistance to the ICAC during its investigation into the case.