No Show
Off

Heading for disaster

William, a restaurant owner, offered a handsome referral commission to his friend, a general manager of a travel agency, for getting into the travel agency’s approved list.
Cover
Image
Heading for disaster
Media Feed Source ID
cases_124_cover_en
fade-up
container

William had emigrated to Malaysia for years and set up a restaurant in a renowned seafood centre there. At a recent travel trade exhibition held in Malaysia, William met his friend Patrick from Hong Kong. Patrick, a general manager of a Hong Kong travel agency, was responsible for designing itineraries for his company’s group tours. In order to secure Patrick’s assistance in putting his restaurant on the company’s approved list, William proposed giving Patrick $30,000 plus a further commission of $10 per head for future referral of tourists. William added that the money could be deposited in the bank account of Patrick’s wife to avoid any trouble.

Later, William’s restaurant was successfully included in the travel agency’s approved list upon Patrick’s recommendation. Soon after that, William deposited $30,000 into the bank account of Patrick’s wife.

Case Analysis

According to Section 9 of the Prevention of Bribery Ordinance (POBO), it would be an offence for Patrick, (an employee of the travel agency) without the approval of his employer, to accept advantages (i.e. $30,000 from William) for putting William’s restaurant into the company’s approved list.  William might also violate POBO by offering bribes.

Although the commission was deposited into the account of Patrick’s wife, Patrick might still commit a corruption offence.  Under the POBO, a person is considered to have accepted an advantage even if a third party receives the advantage on his behalf.

Moreover, it is important to note that it shall be an offence under the POBO if any act (including includes promising, agreeing, soliciting or accepting advantages without permission, etc.) of bribery takes place in Hong Kong.

All Trades/ Industries
Off
migration_resource_id
cases_124

Good relations with complications

Janice was tasked to set up a consignment corner in a hotel for a travel agency. She called her brother-in-law to enquire whether his travel agency would be interested.
Cover
Image
Good relations with complications
Media Feed Source ID
cases_113_cover_en
fade-up
container

Given the increasing demand of the hotel guests for local tour services, the hotel’s senior management decided to set up a consignment corner for a travel agency to deal with these requests. Janice, the hotel’s Marketing Manager, was assigned to the task.

It seemed only natural, therefore, for Janice to call Tommy, her brother-in-law, to enquire whether the travel agency he worked for would be interested.

In the midst of a recession, the performance of Tommy’s company had already been discouraging.

Hence, the pressure on Tommy, the Business Development Manager, to find a solution was intensified.  The prospect of winning the consignment corner came as a huge relief to Tommy.  He explained that this would save his career and urged Janice to grant the consignment contract to his travel agency. Believing that Tommy’s agency was as good as any other agencies and no one would discover their relationship, Janice made her decision easily.

A month later, as a token of gratitude, Tommy presented Janice a tour package to Hawaii as her birthday present.

Case Analysis

Considering the close relationship with her brother-in-law, Janice should have observed her company’s internal guidelines on declaration of conflict of interest and refrained from being involved in the granting of contract. Conflict of interest situations such as this, if not dealt with properly, may easily lead to corruption.

Under the Prevention of Bribery Ordinance (POBO), a tour package is an advantage. Janice might breach the POBO if she, without the permission of the hotel, accepted the tour package as a reward for granting the contract to Tommy’s agency.  In that case, Tommy might also breach the POBO for offering of bribe.

All Trades/ Industries
Off
migration_resource_id
cases_113
Show Only in Sector/Industry
False
Sector / Industry Priority display

Friendship goes first

Xenia, who worked for a travel agent, tried to help her friend, an airline sales representative, to secure business orders by marking up the air-ticket prices quoted by other airlines.
Cover
Image
Friendship goes first
Media Feed Source ID
cases_102_cover_en
fade-up
container

Xenia was a staff member of the ticketing department of a travel agent.  Her close friend, Xaviera, worked in the sales department of an airline company.  Knowing that Xaviera was new and facing tremendous pressure to meet sales target, Xenia always encouraged her customers to purchase air tickets from Xaviera’s airline.

One day after Xaviera received a warning letter about her poor sales performance, she felt distressed and sought comfort from Xenia.  While supporting Xaviera, Xenia received a phone call from an insurance company requesting 50 air tickets for a corporate trip to a convention in Europe.   Xenia knew this would be a good opportunity to help Xaviera out of her predicament.  To secure the business, Xenia marked up prices from competing airlines when making quotations to the insurance company, steering the company toward Xaviera’s airline. As a result of the misleading pricing information provided by Xenia, the insurance company chose to book the tickets with Xaviera’s company.

Case Analysis

Although Xenia and Xaviera were good friends, their relationship conflicted with the company’s interest, placing Xenia in a conflict of interest situation.  She prioritised her personal relationship over professional integrity.  By recklessly marking up the prices of other airlines to aid the sales of Xaviera’s tickets, Xenia acted unfairly toward those airlines and jeopardised the credibility of her company.  If the truth was discovered, it may also lead to complaints from the airlines and clients.  Employees should avoid conflict of interest as far as possible and make timely declarations, strictly adhering to internal guidelines.  Otherwise, they may violate the company’s code of conduct or internal guidelines.

Xenia might commit fraud under Section 16A of the Theft Ordinance by overstating the prices offered by other airlines when submitting quotation to the client.  If Xenia, without the permission of her travel agent, abused her position to favour Xaviera while accepting advantages, she might also be liable under the Prevention of Bribery Ordinance.  On the other hand, by deceiving her client with inaccurate information, Xenia breached the trust her company and her client placed on her.  As an employee of the travel agent, Xenia should diligently fulfil her duties and exercise discretion fairly and transparently. 

All Trades/ Industries
Off
migration_resource_id
cases_102
Show Only in Sector/Industry
False

Training Package on Corruption Prevention in Procurement

Cover
Image
Training Package on Corruption Prevention in Procurement
Import Data
[EN] Training Package on Corruption Prevention in Procurement https://cpas.icac.hk/UPloadImages/InfoFile/cate_43/2016/ca552674-5084-4240-91c8-d7135353156b.pdf Please use the image at the left [ZH-HANT] 採購人員防貪培訓教材 https://cpas.icac.hk/UPloadImages/InfoFile/cate_43/2016/4a7be47a-32b0-4546-95a0-1ff1562a2fc0.pdf Please use the image at the left [ZH-HANS] 采购人员防贪培训教材 https://cpas.icac.hk/UPloadImages/InfoFile/cate_43/2016/4a7be47a-32b0-4546-95a0-1ff1562a2fc0.pdf Please use the image at the left
All Trades/ Industries
On
migration_resource_id
elearning_031
Show Only in Sector/Industry
False
Survey Questions
1. In which country or region are you currently located?
Hong Kong
Chinese Mainland
Other (please specify)
2. What type of organisation do you represent?
Listed company
Large private company
SME / start-up
NGO / non-profit
Public organisation
Chamber / trade association
Other (please specify)
3. What is the size of your organisation?
1 - 49 employees
50-99 employees
100 - 199 employees
200 or more employees
4. What is your staff level or position?
Executive / senior management
Middle management
Professional
Supervisory level
Frontline/Technical Staff
Other (please specify)

Thank you for your feedback.