A former system engineer of a textile company was charged by the ICAC yesterday (September 28) for allegedly concealing conflicts of interest in the procurement of information technology (IT) products worth about $9 million. He had secretly purchased the goods and resold them to the textile company through different suppliers after marking up prices. A relative of the system engineer was also charged for his role in the scam.

Leung Kam-chiu, 33, former system engineer of the IT department of Pacific Textiles Limited (Pacific Textiles), faces four counts of fraud, contrary to section 16A of the Theft Ordinance. Leung’s relative, Kong Cheuk-man, 34, sole proprietor of Shengguangheng Trading Co., Limited (Shengguangheng), faces one of the fraud charges.

Both defendants have been released on bail, pending their appearance at the West Kowloon Magistrates’ Courts for mention tomorrow (September 30). The prosecution will later apply to transfer the case to the District Court for plea.

The alleged offences occurred between July 2021 and March 2023. At the time, Leung was responsible for procuring IT products for Pacific Textiles and an affiliated company, assisting his supervisors to identify suitable suppliers and obtaining quotations for supervisors’ approval.

During the period, Leung had handled 48 procurements totalling about $9 million. The charges alleged that Leung had falsely represented that the products were supplied by four suppliers, and with intent to defraud, induced Pacific Textiles and its affiliated company to make payments for the goods. The four companies were OX Technology Limited (OX Technology), Shengguangheng and two other suppliers.

The ICAC investigation arose from a corruption complaint. Enquiries revealed that Leung was the sole operator of OX Technology, while Shengguangheng was operated by his relative, Kong. The two other suppliers were operated by his friends. During the process, Leung had never declared any conflicts of interest to Pacific Textiles. Investigation also revealed that Leung had allegedly purchased the products online, and resold them to Pacific Textiles under the names of the four suppliers after marking up the prices of the goods by six per cent to eight per cent for profit.

Pacific Textiles requires its staff members involved in procurement to declare conflicts of interest in writing. However, Leung had never declared his ownership of OX Technology and that the goods were actually supplied by himself. Pacific Textiles rendered full assistance to the ICAC during its investigation into the case.

The ICAC recommends that private sector organisations formulate clear guidelines and mechanisms for declaring conflicts of interest. Staff members are reminded to avoid conflicts of interest and to make timely declarations to their employers. Employees who conceal any conflicts of interest in relation to their official duties to benefit themselves or their associates may breach the Prevention of Bribery Ordinance or other criminal laws.

A service provider, charged by the ICAC, was convicted today (September 24) at the Eastern Magistrates’ Courts of aiding and abetting another person to commit misconduct in public office (MIPO). He had abetted a then assistant manager of the Hong Kong Trade Development Council (HKTDC) to divulge confidential tender information, which led to the awarding of an online market platform enhancement project worth over $2.3 million. The then HKTDC assistant manager involved in the case was previously sentenced, following her guilty plea.

Chow Hang-yip, 41, director and shareholder of AF Trinity Technologies Limited (ATTL), was found guilty of one count of aiding, abetting, counselling or procuring the commission by another person of the offence of MIPO, contrary to the Common Law and section 89 of the Criminal Procedure Ordinance.

Magistrate Mr Kestrel Lam Tsz-hong adjourned the case to October 14 for sentencing and granted Chow bail pending a community service order report.

Co-defendant Leung Sui-ying, then Assistant Business Manager, System & Content Development of the HKTDC, pleaded guilty to one count of MIPO at the Eastern Magistrates’ Courts on November 21, 2025. She was sentenced to three months’ imprisonment, suspended for two years.

Between December 2018 and March 2019, the HKTDC conducted an enhancement project for its online market platform – e-Marketplace. Leung was responsible for preparing tender documents and evaluation criteria, as well as identifying service providers. ATTL was one of the service providers invited to bid for the project. It received the highest combined score and was awarded the project, involving payments of over $2.3 million.

Following a corruption complaint, the ICAC launched an investigation and discovered that Chow, a director and shareholder of ATTL, was a friend of Leung. During the bidding process, at the request of Chow, Leung provided him with the contents of tenders submitted by three other service providers, and assisted him in drafting and compiling ATTL’s technical proposal, as well as preparing ATTL’s oral presentation.

The employment contracts and code of conduct of HKTDC staff stipulated that staff members should not disclose any classified information of the HKTDC without authorisation.

The HKTDC rendered full assistance to the ICAC during its investigation into the case.

The prosecution was today represented by prosecuting counsel Stephen Fong, assisted by ICAC officer Gigi Ng.