TNAG-0678-FCO40-827-Allegations-of-corruption-and-bribery-in-Hong-Kong-1977 — Page 116

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DURING THE PAST YEAR, THE EXTENT AND NATURE OF SYNDICATED CORRUPTION HAS BECOME MORE CLEAR TO US IN THE COMMISSION. A NUMBER OF CASES HAVE ALREADY BEEN BEFORE THE COURTS. THERE ARE MANY MORE TO COME IN THE YEAR OR SO AHEAD. AT THE MOMENT WE HAVE 23 SYNDICATES UNDER INVESTIGATION - 18 OF THEM ARE POLICE CORRUPTION SYNDICATES. THERE ARE SOME AREAS OF THE POLICE FORCE + DESERTS+ THEY ARE CALLED -- WHERE CORRUPT MONEY IS DIFFICULT TO COME BY, BUT VIRTUALLY EVERY DIVISION HAS, OR HAS HAD, AT LEAST ONE SYNDICATE IN OPERATION, AND SOME DIVISIONS SEVERAL AND THE NUMBERS OF PEOPLE INVOLVED ARE VERY SUBSTANTIAL INDEED, RUNNING INTO MANY HUNDREDS.

IN A NUT-SHELL+ SYNDICATED CORRUPTION IS A +PROTECTION RACKET+. WHEN YOU HEAR SOMEONE USE THAT TERM, YOU MAY THINK OF GANGSTERS, RACKETEERS, STRUNG-ARM BOYS. IN THE CASE UNDER DISCUSSION TODAY, THE RACKETEERS ARE GOVERNMENT SERVANTS.

MOST POLICE SYNDICATES OPERATE ON A SYSTEM WITH A BROAD BASE. THAT IS, THE UNITS WHICH PAY THE MONEY (DRUG DIVANS, SEX DENS AND SO ON) NARROW DOWN THROUGH A SYSTEM OF COLLECTORS TO A CHIEF COLLECTOR WHO, IN TURN, PASSES OVER THE MONEY TO THE OFFICER APPOINTED BY THE POLICE SYNDICATE AS THEIR +CATERER+. THE

CATER!+CATERER+ IS RESPONSIBLE FOR DISTRIBUTION TO A NUMBER OF OTHER

*OFFICERS IN THE SYNDICATE AT VARIOUS LEVELS, AND THEY IN THEIR

TURN CARRY ON THE CHAIN OF DISTRIBUTION. CONSEQUENTLY, TO PROVE THE EXISTENCE OF A CORRUPTION SYNDICATE, IT IS NECESSARY TO TRACE MONEY THROUGH THIS CHAIN, THROUGH THE NARROW BOTTLENECK IN THE MIDDLE AND THEN OUT AGAIN TO THE END RECIPIENTS. THIS, AS YOU WILL READILY APPRECIATE, IS NEITHER A QUICK NOR AN EASY OPERATION.

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A GOOD EXAMPLE OF A SYNDICATE; WAS THAT WHICH EXISTED IN THE BAY VIEW DIVISION AND RESULTED IN THE CONVICTION OF SUPERINTENDENTS CUNNINGHAM AND THOMPSON= THE FORMER THE DIVISIONAL SUPERINTENDENT AND THE LATTER THE ASSISTANT DIVISIONAL SUPERINTENDENT. THE REVENUE FOR THIS SYNIDCATE CAME FROM THE REGULAR, SYSTEMATIC, COLLECTION OF MONEY FROM GAMBLING AND FROM DANGEROUS-DRUGS ESTABLISHMENTS IN THAT AREA. IN RETURN FOR THIS, PROTECTION OR IMMUNITY FROM PROSECUTION WAS OFFERED, AND WARNING OF ANY RAIDS INITIATED AT DIVISIONAL LEVEL, AS WELL AS PROTECTION FROM +UNAUTHORISED+ COMPETITION, THAT IS THE SETTING-UP OF RIVAL VICE ESTABLISHMENTS IN THE BAY VIEW DISTRICT. IN OTHER WORDS, THE POLICE SYNDICATE WAS VIRTUALLY LICENSING THE FORMATION OF GAMBLING AS WELL AS VICE DENS AND DRUG DIVANS. ALL THAT WAS MISSING WAS A SIGNED CERTIFICATE ON THE WALL. THE KEY ORGANISER IN THIS SYNDICATE, AS IN MOST POLICE DIVISIONAL SYNDICATES, WAS THE DETECTIVE STATION SERGEANT. THE CORRUPT MONEY FLOWED THROUGH A NON-POLICE STRUCTURE, USING SUB-COLLECTORS, HEAD COLLECTORS, A CHIEF COLLECTOR AND AN ACCOUNTANT.

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