Ethics in Practice

A Practical Guide for

Managers of Public Bodies

Contents

Chapter 1: Public Bodies at Work 3

Chapter 2: A Snapshot of ICAC Cases 13

Chapter 3: The Vulnerable Areas 21

Chapter 4: Corruption and Malpractice in Public Bodies 27

Chapter 5: Managers’ Corruption Prevention Action Plans 35

Chapter 6: ICAC Services 39

Appendix I: Names of Scheduled Public Bodies 41

Appendix II: Excerpts from the Prevention of Bribery Ordinance 44

Chapter 2
A Snapshot
of ICAC Cases
 Corruption CAN be prevented if the warning signs of
corruption and malpractice have been detected at an
early stage. The following past ICAC cases may give
the management an insight into this aspect:
Case 1: Monkey Business
Defendant(s): 49 employees of a motor bus company
i n c l ud i n g c h i e f c a s h ie r s, d r i v e r s ,
labourers and clerks
Facts: Several syndicates were involved in a
systematic looting of the daily takings of
the company: bus drivers received bribes
and allowed gangs with duplicate keys
to rifle the cash boxes on the buses;
security staff were being paid off to allow
counting house staff to leave the office
w ith co ins in spe cial ly constr uc ted
clothing; and bank staff were bribed to
permi t the cas hie rs to s yph on off a
percentage of the daily takings when the
money was paid into the bank. At least
$5 ,00 0 w as sto len p er da y and the
estimated total theft was over $2,600,000.
Penalty: Se ntence ranged from suspended to
custodial sentences up to 14 months
• When passing sentence on this corruption case, the
judge strongly criticised the management of the
company for failing to maintain proper monitoring
and control measures to prevent corruption and abuse
of power by staff so that the syndicates were allowed
to exist for several years without being uncovered.
• Damages done to the company were irreparable,
including loss of money and reputation, poor staff
morale and low standard of service. Ultimately, it
was the public who suffered.
• As the management was unwilling to take a serious
14 attitude towards tackling corruption and improving
its management, the company was plagued by
repeated incidences of corruption from the late 70’s
to early 90’s until the company finally closed down
in 1998. Corruption corrodes a company and spells
a failing business.
Case 2: The Fixes Do Not Fix
Defendant(s): Two apprentice jockeys
Facts: The two apprentice jockeys accepted
$150,000 and $200,000 each for rigging
in horse races. In return for the reward,
the apprentice jockeys were requested
to prevent their horses from running to
the best of their natural ability and to
m a n o e u v r e t h e m t o o b s t r u c t ot h e r
horses at the races. The two jockeys
agree d to fix the hors e races and
ride in a manner as i nstructed and
thei r hor ses finished in positio ns
o uts ide the first three plac es at th e
race s. Subsequently, the two jockeys
were charged by the ICAC and they
pleaded guilty to the charges.
Penalty: Sentenced to imprisonment for 6 and 12
months respectively
• The b u s in e ss m a n w h o o f f e r e d b r i b e s t o t h e
a p p r e n t i ce j o c k e ys w a s a l s o c o n v i c t e d a n d
sentenced to 3 1/2 years’ imprisonment. In convicting
him for the bribery of apprentice jockeys, the judge
commended the ICAC that “the evidence has made
very clear the difficulties faced by investigators in
cases of this sort and that such activities should be
v i g o r o u s l y b u t f a i r l y i n v es t ig a t e d f o r t h i s
community - and I thank them.” The fairness and
integrity of horse racing must be upheld lest the
re pu t a t io n o f t h e s p o rt wi l l be t a rn i s he d b ot h
locally and internationally.
• C orr upt i on c a n b r ing se ri ous d am ag e to one ’ s
ca r e er a n d r e p u t a t i o n . Y o un g a n d f r on t - l i n e
employees of public bodies need to adhere to a
h i g h s t a n d a r d of i nt e g r i t y i n o r d e r t o r e s i s t
c o r r up t i o n t e m p t a ti o n s f a c e d b y t h e m i n t h e
workplace. 15
 Corruption CAN be prevented if the warning signs of
corruption and malpractice have been detected at an
early stage. The following past ICAC cases may give
the management an insight into this aspect:
Case 1: Monkey Business
Defendant(s): 49 employees of a motor bus company
i n c l ud i n g c h i e f c a s h ie r s, d r i v e r s ,
labourers and clerks
Facts: Several syndicates were involved in a
systematic looting of the daily takings of
the company: bus drivers received bribes
and allowed gangs with duplicate keys
to rifle the cash boxes on the buses;
security staff were being paid off to allow
counting house staff to leave the office
w ith co ins in spe cial ly constr uc ted
clothing; and bank staff were bribed to
permi t the cas hie rs to s yph on off a
percentage of the daily takings when the
money was paid into the bank. At least
$5 ,00 0 w as sto len p er da y and the
estimated total theft was over $2,600,000.
Penalty: Se ntence ranged from suspended to
custodial sentences up to 14 months
• When passing sentence on this corruption case, the
judge strongly criticised the management of the
company for failing to maintain proper monitoring
and control measures to prevent corruption and abuse
of power by staff so that the syndicates were allowed
to exist for several years without being uncovered.
• Damages done to the company were irreparable,
including loss of money and reputation, poor staff
morale and low standard of service. Ultimately, it
was the public who suffered.
• As the management was unwilling to take a serious
14 attitude towards tackling corruption and improving
its management, the company was plagued by
repeated incidences of corruption from the late 70’s
to early 90’s until the company finally closed down
in 1998. Corruption corrodes a company and spells
a failing business.
Case 2: The Fixes Do Not Fix
Defendant(s): Two apprentice jockeys
Facts: The two apprentice jockeys accepted
$150,000 and $200,000 each for rigging
in horse races. In return for the reward,
the apprentice jockeys were requested
to prevent their horses from running to
the best of their natural ability and to
m a n o e u v r e t h e m t o o b s t r u c t ot h e r
horses at the races. The two jockeys
agree d to fix the hors e races and
ride in a manner as i nstructed and
thei r hor ses finished in positio ns
o uts ide the first three plac es at th e
race s. Subsequently, the two jockeys
were charged by the ICAC and they
pleaded guilty to the charges.
Penalty: Sentenced to imprisonment for 6 and 12
months respectively
• The b u s in e ss m a n w h o o f f e r e d b r i b e s t o t h e
a p p r e n t i ce j o c k e ys w a s a l s o c o n v i c t e d a n d
sentenced to 3 1/2 years’ imprisonment. In convicting
him for the bribery of apprentice jockeys, the judge
commended the ICAC that “the evidence has made
very clear the difficulties faced by investigators in
cases of this sort and that such activities should be
v i g o r o u s l y b u t f a i r l y i n v es t ig a t e d f o r t h i s
community - and I thank them.” The fairness and
integrity of horse racing must be upheld lest the
re pu t a t io n o f t h e s p o rt wi l l be t a rn i s he d b ot h
locally and internationally.
• C orr upt i on c a n b r ing se ri ous d am ag e to one ’ s
ca r e er a n d r e p u t a t i o n . Y o un g a n d f r on t - l i n e
employees of public bodies need to adhere to a
h i g h s t a n d a r d of i nt e g r i t y i n o r d e r t o r e s i s t
c o r r up t i o n t e m p t a ti o n s f a c e d b y t h e m i n t h e
workplace. 15
 Case 3: Teletemptations
Defendant(s): A sales supervisor of a telecommunica-
tions company
Facts: The sales supervisor who worked at a
retail sho p of a te lec omm unic ations
c o m p a n y c o ul d g a i n a c c e s s t o t h e
t el e p h o n e s u b sc r ib e rs ’ co nf i d e n t i a l
data. One day, he was asked by his
wife’s former classmate, whom he was
acquainted w it h , to p r ov i d e
confidential data of subscribers to a
debt-collecting company at a cost of
$80 to $100 each. He accepted the offer
and faxed the information to the said
company. In the following 26 months,
he received a total of $32,150 by 18
deposits made into his bank account.
Penalty: Sentenced to imprisonment for 3 months
•Leakage of c u s t o m e r i n f o r m a t i on i s t h e m o s t
common problem in the telecommunications field.
People are tempted to pay for information, which,
to t h em , i s of v a l u e , i n b o t h t h e p o s it i v e a n d
negative sense of the word.
• It is important for public body employees to realize
that some information may, on the surface, appear
to hav e l itt le valu e o r inte re st to the pub lic in
general but is of value to the culprit. Thus they
should guard themselves from falling into such
corruption traps.
16
Case 4: Corruption Doesn’t Pay
Defendant(s): A registered electrician
Facts: During the course of a site inspection,
an engineer and an electrician of an
ele ctric co mpany disc ov ered th at a
main switch was below the required
standard. To avoid any delay to his
w or k , t h e r e g i st e r ed e l e c t r i ci a n
responsi ble for the i nstallation wor k
offered $500 to the engineer and the
electrician as a reward for turning a
b l in d e ye t o t h e s u b st a n d a r d
installation. Howe ver, the engineer
r e f u s e d t h e o f f e r a n d r e p or t e d t h e
matter to the ICAC.
Penalty: Sentenced to imprisonment for 3 months
• Inspectors may encounter dubious offers during
installation inspections because of their authority in
t e s t i n g a nd r e c o m m en d i n g th e a p p ro v a l o f
electrical installations. However, corruption can
bring disastrous consequences. Turning a blind eye
to substandard electrical installation may cause fire
and threaten public lives and safety.
• This case is a good illustration of the proper way to
do when one is being offered a bribe: refuse the
bribe and report to the ICAC.
17
 Case 3: Teletemptations
Defendant(s): A sales supervisor of a telecommunica-
tions company
Facts: The sales supervisor who worked at a
retail sho p of a te lec omm unic ations
c o m p a n y c o ul d g a i n a c c e s s t o t h e
t el e p h o n e s u b sc r ib e rs ’ co nf i d e n t i a l
data. One day, he was asked by his
wife’s former classmate, whom he was
acquainted w it h , to p r ov i d e
confidential data of subscribers to a
debt-collecting company at a cost of
$80 to $100 each. He accepted the offer
and faxed the information to the said
company. In the following 26 months,
he received a total of $32,150 by 18
deposits made into his bank account.
Penalty: Sentenced to imprisonment for 3 months
•Leakage of c u s t o m e r i n f o r m a t i on i s t h e m o s t
common problem in the telecommunications field.
People are tempted to pay for information, which,
to t h em , i s of v a l u e , i n b o t h t h e p o s it i v e a n d
negative sense of the word.
• It is important for public body employees to realize
that some information may, on the surface, appear
to hav e l itt le valu e o r inte re st to the pub lic in
general but is of value to the culprit. Thus they
should guard themselves from falling into such
corruption traps.
16
Case 4: Corruption Doesn’t Pay
Defendant(s): A registered electrician
Facts: During the course of a site inspection,
an engineer and an electrician of an
ele ctric co mpany disc ov ered th at a
main switch was below the required
standard. To avoid any delay to his
w or k , t h e r e g i st e r ed e l e c t r i ci a n
responsi ble for the i nstallation wor k
offered $500 to the engineer and the
electrician as a reward for turning a
b l in d e ye t o t h e s u b st a n d a r d
installation. Howe ver, the engineer
r e f u s e d t h e o f f e r a n d r e p or t e d t h e
matter to the ICAC.
Penalty: Sentenced to imprisonment for 3 months
• Inspectors may encounter dubious offers during
installation inspections because of their authority in
t e s t i n g a nd r e c o m m en d i n g th e a p p ro v a l o f
electrical installations. However, corruption can
bring disastrous consequences. Turning a blind eye
to substandard electrical installation may cause fire
and threaten public lives and safety.
• This case is a good illustration of the proper way to
do when one is being offered a bribe: refuse the
bribe and report to the ICAC.
17
 Case 5: The Lecturers’ Lesson
Defendant(s): A Pr i n c ip a l L ec t ur e r a n d a S e n i o r
Lecturer of the Building and Surveying
Department of a tertiary institute
Facts: T h r o u g h o f f i ci a l c o n t a c t s, t h e t wo
l e c t u r e r s g o t a cq u a i n t e d w i t h a n
Australian company which specialized
in producing software products for the
construction industry. Subsequently,
they undertook to provide consultancy
services for this company. Although
the two lecturer s had applied to the
employer for permission to take up this
part-time job, they did not report all the
i n c o m e a s r e q u ir e d . I n s t ea d , t h e y
ca us ed t he f e es t o b e pa id to th e m
directly through a company owned by
their wives. Hence, they received over
$600,000 out of which about $200,000
should be due to the employer.
Penalty: S e n t en c e d t o i m p r i s o n m e n t fo r 15
months, suspended for 18 months
• The taking up of a part-time job or involvement in
private investment by staff may lead to actual or
p ot ent ia l co nflict of in teres t s itua tions or e ve n
criminal acts such as deceiving the employer for
personal gain.
• The recommendation from public body employees,
especially the academics and professionals, may
help the promotion of a new product like software,
technical equipment, textbook, etc. because of their
expertise and status in the field. Hence, they should
b e a l e r t t o d u b i o u s o f f er s b y s u p p l i e rs a n d
contractors who approach them with such requests.
18
Case 6: A Dead-end Job
Defendant(s): A mortuary technician of a hospital
Facts: T h e m o rt u a r y t e c h n i c i a n a c c ep t e d
’laisees’ from staff of funeral parlours on
a regular basis to help them expedite
t h e pr o ces s ing a nd is su i n g of dea d
bodies kept at the hospital. In order to
c a r r y o u t h is p lo t , th e m o rt u a r y
technician sought assistance from other
m ort ua ry st af f an d pa id t h em $ 7 00
each month in return. The corrupt act
had lasted for nearly seven years.
Penalty: Sentenced to imprisonment for 3 months
and pay the court cost of $30,000
• P r e ve n t i o n
o f c o r r u p t i o n i s a ma n a g e m e n t
responsibility. Such incidences of corruption and
malpractice should not have prevailed unnoticed if
managers had ex ercised c lose supervisio n and
proper management of their staff.
• Corruption oppo rtunities are not se lf-co ntained
areas of weaknesses which can be dealt with in
isolation. Management and organisation
de fi ci e nc i e s , a l th ou g h n ot se en t o b e d ir ect l y
relating to corruption, can produce problems which
breed opportunities for corruption.
19
 Case 5: The Lecturers’ Lesson
Defendant(s): A Pr i n c ip a l L ec t ur e r a n d a S e n i o r
Lecturer of the Building and Surveying
Department of a tertiary institute
Facts: T h r o u g h o f f i ci a l c o n t a c t s, t h e t wo
l e c t u r e r s g o t a cq u a i n t e d w i t h a n
Australian company which specialized
in producing software products for the
construction industry. Subsequently,
they undertook to provide consultancy
services for this company. Although
the two lecturer s had applied to the
employer for permission to take up this
part-time job, they did not report all the
i n c o m e a s r e q u ir e d . I n s t ea d , t h e y
ca us ed t he f e es t o b e pa id to th e m
directly through a company owned by
their wives. Hence, they received over
$600,000 out of which about $200,000
should be due to the employer.
Penalty: S e n t en c e d t o i m p r i s o n m e n t fo r 15
months, suspended for 18 months
• The taking up of a part-time job or involvement in
private investment by staff may lead to actual or
p ot ent ia l co nflict of in teres t s itua tions or e ve n
criminal acts such as deceiving the employer for
personal gain.
• The recommendation from public body employees,
especially the academics and professionals, may
help the promotion of a new product like software,
technical equipment, textbook, etc. because of their
expertise and status in the field. Hence, they should
b e a l e r t t o d u b i o u s o f f er s b y s u p p l i e rs a n d
contractors who approach them with such requests.
18
Case 6: A Dead-end Job
Defendant(s): A mortuary technician of a hospital
Facts: T h e m o rt u a r y t e c h n i c i a n a c c ep t e d
’laisees’ from staff of funeral parlours on
a regular basis to help them expedite
t h e pr o ces s ing a nd is su i n g of dea d
bodies kept at the hospital. In order to
c a r r y o u t h is p lo t , th e m o rt u a r y
technician sought assistance from other
m ort ua ry st af f an d pa id t h em $ 7 00
each month in return. The corrupt act
had lasted for nearly seven years.
Penalty: Sentenced to imprisonment for 3 months
and pay the court cost of $30,000
• P r e ve n t i o n
o f c o r r u p t i o n i s a ma n a g e m e n t
responsibility. Such incidences of corruption and
malpractice should not have prevailed unnoticed if
managers had ex ercised c lose supervisio n and
proper management of their staff.
• Corruption oppo rtunities are not se lf-co ntained
areas of weaknesses which can be dealt with in
isolation. Management and organisation
de fi ci e nc i e s , a l th ou g h n ot se en t o b e d ir ect l y
relating to corruption, can produce problems which
breed opportunities for corruption.
19
 Case 7: Playing with Fire Chapter 3
Defendant(s): A fire protection manager of an electric

Facts:
company

The m a n a g er r e c o m m en d e d a
The Vulnerable Areas
company which supplied and installed
fi r e p r ot e c t io n e q u i p m e n t t o b e a n
approved contractor for the public body
right after he took up the post. This
company then bid for the contracts of
coating the cables with fire-retardant
m a t e r ia l s w i t h i n 9 0 s t a t io n s o f t h e
p u bl i c b o dy. Th e m an a g e r fu r th e r
assisted and advised the company to
secure the contracts which valued at
$11.5 million. As a reward, he solicited
5% of the value of the contracts from the
t w o d i r e c to r s of t hi s c o m p a n y a n d
subsequently received a total sum of
$600,000.

Penalty: Sentenced to imprisonment for 3 years

• Corruption costs. The dishonest manager who was

brought to book lost his job and career because of
h i s c or r u p t a c t . C o r r u p t i on w o u l d a l s o lo we r
product quality and standard as no supplier or
c o n t r a c t o r co u l d c o n t in u e a b so r b i n g c or r u p t
payments without compromising the quality of the
product. Should any accident occur, the public
would be at great risk.

• S t r en g t h e n in g c o n t r ol s y s t em o n c o n t r a c t i n g
procedures, carrying out close s upervision and
regular communication with contractors and staff to
detect early symptoms of malpractice are keys to
prevent similar problems.

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