Ex-system engineer of textile company charged by ICAC for allegedly concealing conflicts of interest in $9m purchase fraud
2026-9-29
A former system engineer of a textile company was charged by the ICAC yesterday (September 28) for allegedly concealing conflicts of interest in the procurement of information technology (IT) products worth about $9 million. He had secretly purchased the goods and resold them to the textile company through different suppliers after marking up prices. A relative of the system engineer was also charged for his role in the scam.
Leung Kam-chiu, 33, former system engineer of the IT department of Pacific Textiles Limited (Pacific Textiles), faces four counts of fraud, contrary to section 16A of the Theft Ordinance. Leung’s relative, Kong Cheuk-man, 34, sole proprietor of Shengguangheng Trading Co., Limited (Shengguangheng), faces one of the fraud charges.
Both defendants have been released on bail, pending their appearance at the West Kowloon Magistrates’ Courts for mention tomorrow (September 30). The prosecution will later apply to transfer the case to the District Court for plea.
The alleged offences occurred between July 2021 and March 2023. At the time, Leung was responsible for procuring IT products for Pacific Textiles and an affiliated company, assisting his supervisors to identify suitable suppliers and obtaining quotations for supervisors’ approval.
During the period, Leung had handled 48 procurements totalling about $9 million. The charges alleged that Leung had falsely represented that the products were supplied by four suppliers, and with intent to defraud, induced Pacific Textiles and its affiliated company to make payments for the goods. The four companies were OX Technology Limited (OX Technology), Shengguangheng and two other suppliers.
The ICAC investigation arose from a corruption complaint. Enquiries revealed that Leung was the sole operator of OX Technology, while Shengguangheng was operated by his relative, Kong. The two other suppliers were operated by his friends. During the process, Leung had never declared any conflicts of interest to Pacific Textiles. Investigation also revealed that Leung had allegedly purchased the products online, and resold them to Pacific Textiles under the names of the four suppliers after marking up the prices of the goods by six per cent to eight per cent for profit.
Pacific Textiles requires its staff members involved in procurement to declare conflicts of interest in writing. However, Leung had never declared his ownership of OX Technology and that the goods were actually supplied by himself. Pacific Textiles rendered full assistance to the ICAC during its investigation into the case.
The ICAC recommends that private sector organisations formulate clear guidelines and mechanisms for declaring conflicts of interest. Staff members are reminded to avoid conflicts of interest and to make timely declarations to their employers. Employees who conceal any conflicts of interest in relation to their official duties to benefit themselves or their associates may breach the Prevention of Bribery Ordinance or other criminal laws.
Leung Kam-chiu, 33, former system engineer of the IT department of Pacific Textiles Limited (Pacific Textiles), faces four counts of fraud, contrary to section 16A of the Theft Ordinance. Leung’s relative, Kong Cheuk-man, 34, sole proprietor of Shengguangheng Trading Co., Limited (Shengguangheng), faces one of the fraud charges.
Both defendants have been released on bail, pending their appearance at the West Kowloon Magistrates’ Courts for mention tomorrow (September 30). The prosecution will later apply to transfer the case to the District Court for plea.
The alleged offences occurred between July 2021 and March 2023. At the time, Leung was responsible for procuring IT products for Pacific Textiles and an affiliated company, assisting his supervisors to identify suitable suppliers and obtaining quotations for supervisors’ approval.
During the period, Leung had handled 48 procurements totalling about $9 million. The charges alleged that Leung had falsely represented that the products were supplied by four suppliers, and with intent to defraud, induced Pacific Textiles and its affiliated company to make payments for the goods. The four companies were OX Technology Limited (OX Technology), Shengguangheng and two other suppliers.
The ICAC investigation arose from a corruption complaint. Enquiries revealed that Leung was the sole operator of OX Technology, while Shengguangheng was operated by his relative, Kong. The two other suppliers were operated by his friends. During the process, Leung had never declared any conflicts of interest to Pacific Textiles. Investigation also revealed that Leung had allegedly purchased the products online, and resold them to Pacific Textiles under the names of the four suppliers after marking up the prices of the goods by six per cent to eight per cent for profit.
Pacific Textiles requires its staff members involved in procurement to declare conflicts of interest in writing. However, Leung had never declared his ownership of OX Technology and that the goods were actually supplied by himself. Pacific Textiles rendered full assistance to the ICAC during its investigation into the case.
The ICAC recommends that private sector organisations formulate clear guidelines and mechanisms for declaring conflicts of interest. Staff members are reminded to avoid conflicts of interest and to make timely declarations to their employers. Employees who conceal any conflicts of interest in relation to their official duties to benefit themselves or their associates may breach the Prevention of Bribery Ordinance or other criminal laws.