Twenty-four months’ jail for accepting $430,000 illegal rebates
2017-7-21
A former assistant project manager of an engineering company, charged by the ICAC, was today (July 21) sentenced to 24 months’ imprisonment at the District Court for having conspired to accept illegal rebates of about $430,000 in total for recommending the subcontracting of electrical and wiring refurbishing works of a commercial complex to two electrical engineering firms.
Cheung Chi-hung, 47, former assistant project manager of RNB Engineering Hong Kong Limited (RNB), earlier pleaded guilty to two charges of conspiracy for an agent to accept advantages, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance and Section 159A of the Crimes Ordinance.
In sentencing, Deputy Judge Ms Ada Yim Shun-yee said corruption could not be tolerated. The offences committed by the defendant undermined fairness in the quotation system, constituted a breach of trust and caused a financial loss to his former employer.
The deputy judge added that she reduced the defendant’s jail term to 24 months after taking into account his guilty plea as well as restitution that he made to his former employer.
The court heard that at the material time, the defendant was an assistant project manager of RNB, a renovation contractor which secured a renovation project for refurbishing Yau Oi Commercial Complex in Yau Oi Estate, Tuen Mun. He was the supervisor of the project.
In May 2013, the defendant invited the operator of an electrical engineering company to submit a quotation for the electrical works of the project. The operator submitted a written quotation of about $2 million.
After a few discussions, the defendant asked the operator to inflate the quotation to over $2.9 million because he wanted to receive rebates. The written quotation was later submitted to RNB for approval.
However, RNB decided to engage an additional subcontractor to share the electrical works of the project. The operator agreed to reduce the project price to over 2.35 million, of which 15 per cent or approximately $350,000 would be rebates for the defendant.
The operator paid about $299,000 out of the $350,000 on 13 occasions between January 2014 and January 2015. In March 2015, the operator stopped paying rebates to the defendant.
The court heard that in October 2014, the defendant invited the proprietor of another electrical engineering company to submit a quotation for the electrical wiring refurbishing works of the project. The proprietor submitted a quotation of over $370,000.
A few days later, the proprietor received two photo images showing that his quotation was inflated to over $470,000. The defendant called the proprietor to explain that the remaining sum would have to be returned to him. To avoid trouble, the proprietor acceded to the defendant’s request.
After the proprietor received project payments from RNB, he received calls from the defendant requesting a certain amount of rebates to be paid to him.
On three occasions between October and December 2014, the defendant collected a total of approximately $180,000 from the proprietor, of which $100,000 was a payment for raw materials, while the remaining $80,000 was a rebate for him, the court was told.
RNB had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by Senior Public Prosecutor Rosa Lo, assisted by ICAC officer Jessie Fu.
Cheung Chi-hung, 47, former assistant project manager of RNB Engineering Hong Kong Limited (RNB), earlier pleaded guilty to two charges of conspiracy for an agent to accept advantages, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance and Section 159A of the Crimes Ordinance.
In sentencing, Deputy Judge Ms Ada Yim Shun-yee said corruption could not be tolerated. The offences committed by the defendant undermined fairness in the quotation system, constituted a breach of trust and caused a financial loss to his former employer.
The deputy judge added that she reduced the defendant’s jail term to 24 months after taking into account his guilty plea as well as restitution that he made to his former employer.
The court heard that at the material time, the defendant was an assistant project manager of RNB, a renovation contractor which secured a renovation project for refurbishing Yau Oi Commercial Complex in Yau Oi Estate, Tuen Mun. He was the supervisor of the project.
In May 2013, the defendant invited the operator of an electrical engineering company to submit a quotation for the electrical works of the project. The operator submitted a written quotation of about $2 million.
After a few discussions, the defendant asked the operator to inflate the quotation to over $2.9 million because he wanted to receive rebates. The written quotation was later submitted to RNB for approval.
However, RNB decided to engage an additional subcontractor to share the electrical works of the project. The operator agreed to reduce the project price to over 2.35 million, of which 15 per cent or approximately $350,000 would be rebates for the defendant.
The operator paid about $299,000 out of the $350,000 on 13 occasions between January 2014 and January 2015. In March 2015, the operator stopped paying rebates to the defendant.
The court heard that in October 2014, the defendant invited the proprietor of another electrical engineering company to submit a quotation for the electrical wiring refurbishing works of the project. The proprietor submitted a quotation of over $370,000.
A few days later, the proprietor received two photo images showing that his quotation was inflated to over $470,000. The defendant called the proprietor to explain that the remaining sum would have to be returned to him. To avoid trouble, the proprietor acceded to the defendant’s request.
After the proprietor received project payments from RNB, he received calls from the defendant requesting a certain amount of rebates to be paid to him.
On three occasions between October and December 2014, the defendant collected a total of approximately $180,000 from the proprietor, of which $100,000 was a payment for raw materials, while the remaining $80,000 was a rebate for him, the court was told.
RNB had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by Senior Public Prosecutor Rosa Lo, assisted by ICAC officer Jessie Fu.