Ex-sales manager jailed for fraud over truck alteration works

2019-1-31

A former sales manager of a commercial vehicle distributor, charged by the ICAC, was today (January 31) sentenced to nine months’ imprisonment at the District Court for fraud by submitting 69 false “Letters of No Objection” (LNOs) to the Transport Department (TD) for seeking approval for truck alteration works.

Au Chung-sum, 55, former sales manager of International Automobiles Limited (IAL), was earlier convicted of eight charges of fraud, contrary to Section 16A of the Theft Ordinance.

In sentencing, Deputy Judge Ernest Lin Kam-hung said the offences committed by the defendant lasted a long period of about four years and his acts undermined public safety, thus warranting an immediate custodial sentence to serve as a deterrent.

The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above alleged offences.

The court heard that at the material time, the defendant was a sales manager of IAL, an authorised distributor of two commercial truck manufacturers. He was responsible for arranging alteration works by reducing or extending the length of chassis of trucks in stock, including making applications to the TD for approval for conducting such alteration works.

The TD required that an application for conducting alteration works on a truck should be supported by the truck manufacturer. Hence, the defendant had to provide the relevant alteration details to the vehicle manufacturer for approval before making the application to the TD. If approved, the truck manufacturer would then issue a LNO certifying that it had no objection for IAL to conduct alteration works on the truck.

The court heard that between July 9, 2012 and June 23, 2016, the defendant made 66 and three LNOs purportedly issued by the two commercial truck manufacturers respectively, each certifying that the manufacturer had no objection to the proposed alteration works to be carried out on the truck; and used the LNOs in applications to the TD for approval for altering the trucks.

As a result, the defendant induced motor vehicle examiners of the TD to approve the applications.

The TD, IAL and the two commercial truck manufacturers had rendered full assistance to the ICAC during its investigation into the case.

The prosecution was today represented by prosecuting counsel Olivia Tsang, assisted by ICAC officer Henry Lam.
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