Hong Kong News
Nonpartisan, Noncommercial, unconstrained.
Saturday, Apr 27, 2024
Real, Diverse, Unbiased.
Man charged by ICAC for concealing conflict of interest in HK$70m electric parts purchase orders
A former manager was charged for allegedly deceiving an electric motors company into placing over 1,300 purchase orders of electronic parts worth over HK$70 million with a supplier by concealing the interests of him and his family member in the supplier.
Seh Yat-wing, 58, former manager of the publicly listed Johnson Electric Group, faces two counts of fraud. The case was brought to the Eastern Magistrates’ Courts on Thursday for mention.
It is alleged that between September 2010 and March 2017, the defendant concealed from Johnson Electric Group his or his family member’s interests in Eaton Enterprise Limited, and with intent to defraud, induced the Group to include Eaton in the list of approved suppliers for the provisions of goods and place purchase orders with Eaton.
During the abovementioned period, Johnson Electric Group had placed over 1,300 orders of electric parts with Eaton and settled payments amounted to over HK$70 million.
The ICAC investigation revealed that the defendant was alleged to have approved Eaton’s application for registering as a supplier of Johnson Electric Group. Records showed that the defendant and the registered sole director cum shareholder of Eaton were the parents of a child born in 2012.
In accordance with the policy of Johnson Electric Group managing conflict of interest, its employees should not engage in any business of its suppliers or customers. In addition, its employees should disclose relationships that may present a possible conflict of interest.
The defendant joined the Group in 2006 as assistant manager and was promoted to manager in 2015. He was responsible for procuring electric parts and selecting suitable suppliers for the Group.
It is alleged that between September 2010 and March 2017, the defendant concealed from Johnson Electric Group his or his family member’s interests in Eaton Enterprise Limited, and with intent to defraud, induced the Group to include Eaton in the list of approved suppliers for the provisions of goods and place purchase orders with Eaton.
During the abovementioned period, Johnson Electric Group had placed over 1,300 orders of electric parts with Eaton and settled payments amounted to over HK$70 million.
The ICAC investigation revealed that the defendant was alleged to have approved Eaton’s application for registering as a supplier of Johnson Electric Group. Records showed that the defendant and the registered sole director cum shareholder of Eaton were the parents of a child born in 2012.
In accordance with the policy of Johnson Electric Group managing conflict of interest, its employees should not engage in any business of its suppliers or customers. In addition, its employees should disclose relationships that may present a possible conflict of interest.
The defendant joined the Group in 2006 as assistant manager and was promoted to manager in 2015. He was responsible for procuring electric parts and selecting suitable suppliers for the Group.
