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39 netted in HK for bribery, fraud
(Xinhua)
Updated: 2004-04-20 11:00

Thirty-nine people have been arrested by Hong Kong Independent Commission Against Corruption (ICAC) for alleged bribery and fraud involving compensation totaling about HK$10 million (US$1.28 million) over several redevelopment projects.

Those arrested include an Urban Renewal Authority assistant manager, a company director, an estate agency proprietor, six flat owners and 30 suspected bogus tenants. A total of HK$76,000 in cash, believed to be bribe money, was seized, according to a press release of ICAC on Monday.

The investigation arose from a corruption complaint, alleging a company director might have offered advantages to an Urban Renewal Authority employee for classified information on redevelopment projects.

Inquiries found the arrested company director allegedly offered HK$270,000 in bribes to the authority's assistant manager. In return, the letter allegedly provided the company director with classified information on six redevelopment projects between July 2002 and October 2003.

It was suspected that with the classified information, the arrested company director and the estate agency proprietor had acquired or rented properties subject to the authority's resumption, with a view to defrauding compensation.

The arrested company director and the estate agency proprietor were also suspected to have recruited a number of people to acquire or rent some of these properties.

It was alleged that upon receiving the authority's compensation, the flat owners or suspected bogus tenants would keep part of the money as rewards, and surrender the remaining amount to the company director and the estate agency proprietor.

As a result of the fraudulent scheme, the syndicate allegedly defrauded the authority of compensation totaling HK$10 million.

The authority has rendered full assistance to the ICAC investigation. The arrested have been released on bail, and inquiries are continuing.

 
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