Waterworks Inspector of WSD admits misconduct

2017-2-16

A Waterworks Inspector of the Water Supplies Department (WSD), charged by the ICAC, admitted at the Kowloon City Magistracy today (February 16) that he had misconducted himself by dishonestly assisting two companies in securing 14 purchase orders worth over $420,000 from the department.

Luk Ka-lun, 52, today pleaded guilty to one count of misconduct in public office, contrary to Common Law.

Magistrate Ms Amy Chan Wai-mun adjourned the case to March 7 this year for sentence, pending a community service order report. The defendant was remanded in the custody of the Correctional Services Department.

The case arose from a corruption complaint referred by the WSD. Subsequent ICAC enquiries revealed the above offence.

The court heard that at the material time, the defendant was an Assistant Waterworks Inspector of the WSD. He was responsible for handling the procurement of equipment and repair services.

According to the departmental instruction of the WSD, at least two quotations from suppliers were required for a procurement with a value not exceeding $50,000.

Peking Industrial & Trading Company (Peking) and Lee Wah Electrical Engineering Company (Lee Wah) were companies owned by a sole proprietor, who was acquainted with the defendant.

Peking was added to the supplier list of the Electrical Maintenance Sub-Division of the WSD in December 2008.

The court heard that in September 2011, the defendant submitted a Supplier Evaluation Report (SER) to his supervisors recommending that Lee Wah be included into the supplier list.

As the defendant did not disclose in the SER that Lee Wah was associated with Peking, and that the two companies were owned by the same sole proprietor, the recommendation was subsequently approved.

Between October 10, 2011 and December 6, 2012, the defendant sought quotations only from Peking and Lee Wah in the same procurement exercises on 14 occasions, and recommended to his supervisors that the offer of Peking or Lee Wah be accepted.

Believing that the quotations were genuinely competitive and came from two different unconnected companies, the supervisors approved the recommendations and awarded 14 purchase orders worth over $420,000 in total to either Peking or Lee Wah.

The defendant was arrested on March 3, 2016. Under caution, the defendant admitted that he knew Peking and Lee Wah were owned and controlled by the sole proprietor when he was handling the 14 purchase orders, the court was told.

The WSD had rendered full assistance to the ICAC during its investigation.

The prosecution was today represented by Acting Senior Public Prosecutor Janice Cheuk, assisted by ICAC officer Monica Lo.
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