ICAC concludes probe into graft complaints over flats-swap deal and related matters

2018-8-31

The ICAC has concluded an investigation into corruption complaints in relation to a flats-swap deal and related matters.

Based on the findings of the investigation, the ICAC sought legal advice from the Department of Justice. Pursuant to the legal advice, the ICAC has charged two persons today (August 31) with bribery and misconduct in public office (MIPO) in connection with the case.

Wilson Fung Wing-yip, 55, former Deputy Secretary for Economic Development and Labour, faces two charges – one of public servant accepting an advantage, contrary to Section 4(2)(a) of the Prevention of Bribery Ordinance (POBO), and one of MIPO, contrary to Common Law.

Chan Ung-iok, 62, then director-cum-shareholder of Helicopters Hong Kong Limited, Hong Kong Express Airways Limited and/or Heli Express Limited (the three companies), faces a charge of offering an advantage to a public servant, contrary to Section 4(1)(a) of the POBO.

The defendants will appear in the Eastern Magistracy next Tuesday (September 4) for transfer to the District Court for plea.

At the material time, Fung, being Deputy Secretary for Economic Development and Labour and head of the Aviation Division of the Economic Development and Labour Bureau, was responsible for, inter alia, air service negotiations, designation of carriers and allocation of air traffic rights.

One of the charges alleges that on or about September 28, 2004, Fung, without lawful authority or reasonable excuse, accepted from Chan a sum of HK$510,000 as a reward for being or remaining favourably disposed to her and/or the three companies controlled by her or related to her.

Another charge alleges that on or about the same day, Chan offered the sum of HK$510,000 to Fung for the same purpose.

The remaining charge alleges that between September 28, 2004 and July 9, 2006, Fung, in the course of or in relation to his public office, without reasonable excuse or justification, wilfully misconducted himself by:

(i) accepting the sum of HK$510,000 from Chan on or about September 28, 2004, being the initial deposit money for the purchase of a property in Robinson Road, Hong Kong by him;

(ii) concealing from or failing to declare or disclose to the Government his acceptance of the sum of HK$510,000 from Chan on or about September 28, 2004;

(iii) failing to declare a conflict of interest in connection with his handling and processing of the various applications by the three companies controlled by or related to Chan; and

(iv) failing to abstain from the deliberation and decision making in respect of the various applications by the three companies controlled by or related to Chan.

According to the legal advice, there is insufficient evidence to prefer prosecution against other persons involved in the investigation.

The defendants have been released on ICAC bail, pending their court appearance next Tuesday.
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