Technical Manager of HKU guilty of MIPO and fraud
2018-4-9
A Technical Manager of the University of Hong Kong (HKU), charged by the ICAC, was today (April 9) convicted at the District Court of misconduct in public office (MIPO) and conspiracy to defraud the university by securing over $841,000 worth of purchase orders and renovation works for a supplier without disclosing his financial interest in it.
Yuen Da-baan, 58, was found guilty of five charges – four of MIPO and one of conspiracy to defraud, all contrary to Common Law.
Judge Mr Clement Lee Hing-nin adjourned the case until April 26 for sentence, pending a background report. The defendant was remanded in the custody of the Correctional Services Department.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that at the material time, the defendant was the Technical Manager of the Faculty of Dentistry (FD) of HKU and the head technical staff of the Centralized Research Laboratories (CRL) under FD. He was responsible for handling procurement exercises for research materials, laboratory equipment and renovation works of CRL.
In January 2013, the defendant’s younger sister set up MT Scientific Company (MTSC) to provide chemicals, laboratory apparatus and renovation services to various organisations, including FD of HKU. The defendant was responsible for the operation of MTSC as he was its “consultant”.
The court heard that between March 1, 2013 and June 16, 2016, the defendant arranged for MTSC to provide CRL with laboratory items in 33 direct purchases totalling over $119,000, but he did not disclose to HKU either his or his sister’s connection with MTSC.
On January 2, 2015, HKU issued a purchase order to a laboratory equipment company for supplying an ion analyser. The company was required to renovate a laboratory of CRL before its installation.
Knowing that the company was incapable of carrying out the renovation work, the defendant arranged for MTSC to take it up at $600,000. The defendant again failed to disclose to HKU that he and his sister owned or had a financial interest in MTSC.
The court also heard that in March 2015, FD of HKU sought quotations for replacement of a biosafety cabinet and renovation of another laboratory before its installation.
When negotiating with a medical equipment company, one of the potential bidders, the defendant arranged for that company to subcontract the renovation work to MTSC and requested its sales executive not to list it out on its quotation.
Believing that the defendant had no conflict of interest in the procurement exercise, HKU approved it. After receiving the payment from HKU, the company paid $51,000 to MTSC for its renovation service.
The court heard that in two other quotation exercises for the purchase of two shaker incubators for CRL, the defendant included quotations of MTSC, respectively dated August 26 and 27, 2015, for comparison of prices with other bidders.
The defendant stated on the procurement forms of HKU that he had nothing to declare concerning conflicts of interest, and recommended to HKU that the bid of MTSC should be accepted as it offered the lowest quote.
As a result, HKU awarded two purchase orders for over $41,000 and $30,000 respectively to MTSC, and subsequently made payments to the company, the court was told.
HKU had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Wong Hay-yiu, assisted by ICAC officer Ellis Leung.
Yuen Da-baan, 58, was found guilty of five charges – four of MIPO and one of conspiracy to defraud, all contrary to Common Law.
Judge Mr Clement Lee Hing-nin adjourned the case until April 26 for sentence, pending a background report. The defendant was remanded in the custody of the Correctional Services Department.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that at the material time, the defendant was the Technical Manager of the Faculty of Dentistry (FD) of HKU and the head technical staff of the Centralized Research Laboratories (CRL) under FD. He was responsible for handling procurement exercises for research materials, laboratory equipment and renovation works of CRL.
In January 2013, the defendant’s younger sister set up MT Scientific Company (MTSC) to provide chemicals, laboratory apparatus and renovation services to various organisations, including FD of HKU. The defendant was responsible for the operation of MTSC as he was its “consultant”.
The court heard that between March 1, 2013 and June 16, 2016, the defendant arranged for MTSC to provide CRL with laboratory items in 33 direct purchases totalling over $119,000, but he did not disclose to HKU either his or his sister’s connection with MTSC.
On January 2, 2015, HKU issued a purchase order to a laboratory equipment company for supplying an ion analyser. The company was required to renovate a laboratory of CRL before its installation.
Knowing that the company was incapable of carrying out the renovation work, the defendant arranged for MTSC to take it up at $600,000. The defendant again failed to disclose to HKU that he and his sister owned or had a financial interest in MTSC.
The court also heard that in March 2015, FD of HKU sought quotations for replacement of a biosafety cabinet and renovation of another laboratory before its installation.
When negotiating with a medical equipment company, one of the potential bidders, the defendant arranged for that company to subcontract the renovation work to MTSC and requested its sales executive not to list it out on its quotation.
Believing that the defendant had no conflict of interest in the procurement exercise, HKU approved it. After receiving the payment from HKU, the company paid $51,000 to MTSC for its renovation service.
The court heard that in two other quotation exercises for the purchase of two shaker incubators for CRL, the defendant included quotations of MTSC, respectively dated August 26 and 27, 2015, for comparison of prices with other bidders.
The defendant stated on the procurement forms of HKU that he had nothing to declare concerning conflicts of interest, and recommended to HKU that the bid of MTSC should be accepted as it offered the lowest quote.
As a result, HKU awarded two purchase orders for over $41,000 and $30,000 respectively to MTSC, and subsequently made payments to the company, the court was told.
HKU had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Wong Hay-yiu, assisted by ICAC officer Ellis Leung.