Ex-HKUST supplier duo charged by ICAC over $4m procurement fraud
2022-9-27
Two operators of two former suppliers of the Hong Kong University of Science and Technology (HKUST) were charged by the ICAC yesterday (September 26) for allegedly conspiring with a then Adjunct Associate Professor of the university to conceal the latter’s interest in the two suppliers concerning various procurements that involved payments totalling about $4 million over a span of more than seven years.
Au Yeung Siu-fung, 42, sole director and shareholder of Chun Fo (Asia) Pharmaceutical Co., Limited (CFPL); and Yeung Siu-on, 40, sole director and shareholder of PIT Limited (PITL), face a total of 17 charges – three of conspiracy to defraud, contrary to Common Law; and 14 of fraud, contrary to section 16A(1) of the Theft Ordinance.
The duo were released on ICAC bail, pending their appearance before the Eastern Magistrates’ Courts tomorrow (September 28) for the case to be transferred to the District Court.
At the material time, CFPL was a medical product supplier. When it was incorporated in mid-2012, Yeung was its sole director and shareholder while Au Yeung took over the position in late 2012. PITL was a supplier providing environmental testing services and Yeung became its sole director and shareholder in late 2011.
The alleged offences took place between September 2011 and February 2019. During the period, an Adjunct Associate Professor of the Department of Chemistry of HKUST conducted 17 tendering and procurement exercises for the university and its subsidiary to purchase various laboratory equipment and testing services from CFPL and PITL in which he had direct or indirect financial interests.
In accordance with the regulations of HKUST, the Adjunct Associate Professor was required to declare his conflict of interest with any suppliers before engaging them. Meanwhile, suppliers were required to declare whether any HKUST staff have any interest in them.
The conspiracy charges allege that Au Yeung and Yeung had separately conspired with the Adjunct Associate Professor to defraud HKUST by concealing the latter’s interest in CFPL and PITL while he had a duty to disclose any conflict of interest to the university, but instead, he induced it to engage CFPL and PITL in three of the 17 tendering and procurement exercises, and caused it to settle invoices of the two suppliers in full.
The remaining charges allege that either Au Yeung or Yeung, together with the Adjunct Associate Professor, induced HKUST or its subsidiary to engage CFPL or PITL in the other 14 tendering and procurement exercises by concealing the latter’s interest in the two suppliers.
The 17 tendering and procurement exercises involved payments totalling about $4 million.
The ICAC investigation arose from a corruption complaint. Upon the legal advice sought from the Department of Justice, charges were preferred against Au Yeung and Yeung. The relevant investigation is continuing.
HKUST has rendered full assistance to the ICAC during its investigation into the case.
Au Yeung Siu-fung, 42, sole director and shareholder of Chun Fo (Asia) Pharmaceutical Co., Limited (CFPL); and Yeung Siu-on, 40, sole director and shareholder of PIT Limited (PITL), face a total of 17 charges – three of conspiracy to defraud, contrary to Common Law; and 14 of fraud, contrary to section 16A(1) of the Theft Ordinance.
The duo were released on ICAC bail, pending their appearance before the Eastern Magistrates’ Courts tomorrow (September 28) for the case to be transferred to the District Court.
At the material time, CFPL was a medical product supplier. When it was incorporated in mid-2012, Yeung was its sole director and shareholder while Au Yeung took over the position in late 2012. PITL was a supplier providing environmental testing services and Yeung became its sole director and shareholder in late 2011.
The alleged offences took place between September 2011 and February 2019. During the period, an Adjunct Associate Professor of the Department of Chemistry of HKUST conducted 17 tendering and procurement exercises for the university and its subsidiary to purchase various laboratory equipment and testing services from CFPL and PITL in which he had direct or indirect financial interests.
In accordance with the regulations of HKUST, the Adjunct Associate Professor was required to declare his conflict of interest with any suppliers before engaging them. Meanwhile, suppliers were required to declare whether any HKUST staff have any interest in them.
The conspiracy charges allege that Au Yeung and Yeung had separately conspired with the Adjunct Associate Professor to defraud HKUST by concealing the latter’s interest in CFPL and PITL while he had a duty to disclose any conflict of interest to the university, but instead, he induced it to engage CFPL and PITL in three of the 17 tendering and procurement exercises, and caused it to settle invoices of the two suppliers in full.
The remaining charges allege that either Au Yeung or Yeung, together with the Adjunct Associate Professor, induced HKUST or its subsidiary to engage CFPL or PITL in the other 14 tendering and procurement exercises by concealing the latter’s interest in the two suppliers.
The 17 tendering and procurement exercises involved payments totalling about $4 million.
The ICAC investigation arose from a corruption complaint. Upon the legal advice sought from the Department of Justice, charges were preferred against Au Yeung and Yeung. The relevant investigation is continuing.
HKUST has rendered full assistance to the ICAC during its investigation into the case.