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of uncertainty as to the political future of the territory, many are afflicted by an overwhelming desire to make money quickly.
90. It is said that corruption is rife in the commercial and industrial sectors of society. As one of my informants put it:
"The whole of Hong Kong operates on a commission basis.”
There is a great deal of truth in this; and I have good reason to believe that the vast majority of businessmen in Hong Kong would not have it otherwise. The only section of the Ordinance which strikes at corruption in the commercial sector is section 9; and sub-section (4) of that section is a complete “let-out” for what, in Government service, would undoubtedly be corrupt behaviour. It is not open to Government to "permit” a Crown servant to accept a "kick-back” on a Government contract. But "kick-backs" to employees in commercial firms is a matter of everyday occurrence, tacitly accepted by employers, if not expressly approved of by them.
91. There is tremendous scope for corruption in Government service, particularly in those departments which are in daily contact with the public. The majority of the allegations of corruption received by the Com- mission concern the following departments:-Police, Labour, Commerce and Industry, Public Works, Housing, Immigration, Transport, Urban Services and New Territories Administration. This should not be taken as implying that other departments on the Executive side of Government, or the Judiciary, are thought to be free from corruption, but merely that by far the greatest number of allegations which have been made to the Com- mission, concern the departments which I have named; and, as regards the Judiciary, such allegations as have been made concern the clerical grade only. I am happy to report that I have not been told anything which remotely suggests that any magistrate or judge is thought to be corrupt. But, as regards the departments which I have named, the Commission has received a very considerable amount of information alleging corruption-- in some cases on an extensive scale.
92. The worst forms are what is described by the Anti-Corruption Office as "syndicated" corruption, that is to say a whole group of officers involved in the collection and distribution of money. For example, it is said that groups of police officers are involved in the collection of payments from pak pai drivers, the keepers of gambling schools and other vice establishments. Frequently the "collection" is far more than corruption in the true sense. It is plain extortion accompanied by veiled threats of violence at the hands of triad gangsters. The "collections" seldom take the form of direct payments to any member of the corrupt group of officers. Almost invariably there is the middleman. He is referred to euphemistically as "the caterer”. He receives the money; and in some cases, it is said that vast sums are involved.
93. Opinions vary as to the extent of "syndicated" corruption; but it is widely believed that it exists in a number of departments, notably the police. It is said that in a number of cases these "syndicates" involve certain senior officers as well as those of intermediate and junior rank.
94. In the context of the present inquiry, the community is particularly interested in the extent to which "syndicated" corruption exists in the Police Force because of the burning issue as to whether the Anti-Corruption Office should continue to function as part of the Police. I think it is obvious from what I have said regarding the post-war history of Hong Kong that there are probably more opportunities for corruption in the Police Force than in other departments, although from time to time the opportunities for corruption in other depart- ments have been very great e.g. looking back over the years at various times there have been tremendous opportunities for corruption in the Public Works Department. The same applies to the Commerce and Industry, Immigration, Housing and Labour Departments, and the New Territories Administration. But in the Police Force there are now, and there has been for the last 20 years, a great many opportunities for corruption. An A.C. Office report shows how syndicated corruption operates in the Traffic Branch. Sums of money are collected on a regular basis from all forms of illegal transport and even from taxi drivers and lorry drivers. It is said that if any of these vehicle owners are not willing to pay, they receive an unnecessary number of summonses for petty infringments of the traffic regulations. Perhaps the most frightening aspect of corruption in the Traffic Branch is the suggestion that the evidence in accident cases is sometimes tampered with and watered down in consideration of a money payment.
95. Apart from syndicated corruption in the Traffic Branch it is said that a major source of corruption has been what is described rather glibly as "social" offences e.g. hawking (either with or without a licence) gambling, brothels, etc. I do not think that the illegal sale of narcotics could possibly be described as a “social” offence; but it is said that this also is a lucrative source of corruption.
96. The police have always felt particularly frustrated because of the attitude of the judiciary to these so- called "social" offences. They say that the fines imposed by magistrates have been ridiculously low; and on the rare occasions when a magistrate has decided to take a firm stand regarding, say, hawking and obstruction, etc., his sentences have been drastically reduced on appeal to the Supreme Court, the result being that the lower judiciary have received no encouragement from the superior courts to take a firm line. But, apart from that,
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