Offering bribes for contract constitutes an offence
An air-conditioning equipment supplier provided spare parts to an engineering company for an air-conditioning project of a large exhibition centre. As some of the parts supplied broke down due to manufacturing fault, the supplier engaged a sub-contractor to carry out repairing work at its own expenses. The work, however, was done unsatisfactorily. The engineering company subsequently reallocated the work to its own contractor and assigned an engineer to supervise the work. The supplier thus approached the engineer in a bid to get the job back to his sub-contractor and promised to reward the engineer by a sum of cash.
The engineer refused the offer and reported the matter to the ICAC.
Case Analysis
The supplier offered an advantage (i.e. cash) to the engineer, who was an employee (i.e. agent) of the engineering company (i.e. principal), as an inducement or reward for showing favour in relation to his principal’s business by awarding the contract back to the supplier’s sub-contractor. The supplier contravened Section 9(2) of the Prevention of Bribery Ordinance (Cap.201) (POBO). Had the engineer accepted the bribe without the permission of his principal, he would have contravened Section 9(1) of the POBO.
Case in Perspective
The use of bribery to obtain contracts will inflate the operation costs of the bidder and cause unfairness to other bidders who observe the principle of fair play. The services procured may also fall short of standard and affect the overall quality of the job because no supplier can go on absorbing corrupt payments and still give the quality you want. It is crucial for management to provide integrity training so that staff at all levels understand the anti-corruption laws and stay vigilant to the risks of corruption when performing their duties.
The positive action of the engineer is a good illustration of the proper action to take when one is being offered a bribe or has discovered malpractices. Staff members should refuse any bribes and promptly report any suspected malpractices or illegal activities to law enforcement agencies including the ICAC and/or the management. Companies should establish a clear and confidential whistle-blowing mechanism.
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