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25.
On 8 June 1993, the police officers and a number of suspected triads were arrested. when interviewed the police officers either refused to answer any questions or said they were on the flight by chance.
26.
By 17 June 1993, sufficient evidence had been obtained to charge one triad with five offences arising from his possessing and using the firearm. He and two others were
were also charged with attempting to pervert the course of justice by arranging that false statements be made by the witnesses. On 18 August 1993, they were
committed to the High Court.
27.
On 21 July 1993, a file of evidence regarding the suspected involvement of the police officers was submitted to the Attorney General's Chambers.
US Counterfeit Currency
28.
In July 1992 information was received that counterfeit United States dollars were being distributed in Hong Kong by a syndicate which had police protection.
29.
The information was developed and the Commission was able to identify, contact and infiltrate the syndicate. The corruption allegation was not substantiated and liaison with the Commercial Crimes Bureau and the US Secret Service, who have currency responsibilities, was established. On 25 February 1993, a joint operation was undertaken which resulted in the arrest of eight syndicate members, the seizure of some $7M in counterfeit currency and counterfeiting equipment including the plates.
30.
Six people were subsequently charged with counterfeiting offences. On 29 July 1993, two pleaded guilty in the High Court. Sentence has been deferred until they have given their evidence as crown witnesses in the forthcoming trial of the remainder. The date of this trial
has yet to be set.
Corruption Prevention Department
31.
Since May 1993, the Corruption Prevention Department has completed 36 studies of procedures in 25 different Government departments and public bodies. Important clients since the last briefing are detailed at Annex II.
32.
The Corruption Prevention Department has also provided ad hoc advice on the following
Immigration Department. Information strategy and implementation.
system's
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Transport Department. driving tests.
The waiting time for
Industry Department. development scheme.
Applied research and
Housing Department.
Approved decoration
Contractor system.
Works Branch. Labour and materials index.
Government Property Agency.
Appointment of
property management agents.
Marine Department.
Port control system.
33.
Between 1 April and 31 July 1993, assistance was given to 47 private sector clients.
Community Relations Department
Research Study on Hong Kong Companies with A Production Base in China
34.
Members were briefed at the last meeting about the Commission's intention to offer preventive education advice and assistance to Hong Kong businessmen engaged in cross-border trade. To know more about these types of business activities and the problems Hong kong businessmen face, a research study was commissioned. The study involved desk research work and a questionnaire survey of 50 Hong Kong companies which have a production base in China.
35.
a)
b)
c)
The main findings of the study are
cultural "guanxi'
Hong Kong businessmen face the difference that people in China take
(personal relations) as essential and normal. Hong Kong businessmen often have to rely on personal friendship and offers of "gifts", including cash and, in some cases, deposits in Hong Kong bank accounts.
The costs of "gifts" and "guanxi" may be 3 to 5% of the operating costs of their businesses in China. Such costs are as yet bearable and are not viewed by Hong Kong investors as an economic disincentive.
When offering gifts, the businessmen consider they are victims of the system and would prefer to work in a more honest environment, quoting Hong Kong and Singapore as examples.
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36.
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d)
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Hong Kong investors suggest that the most effective measure to overcome the corruption problem they face is education and publicity, and that law enforcement cooperation between the ICAC and its Chinese counterpart alone is not enough.
The findings coincide with ICAC's strategy. Cross-border corruption is a mutual problem for both Hong
i.e. a Kong and China because it takes two,
Hong kong businessmen and his PRC counterpart, to commit a corrupt
act.
37.
The Commission will strengthen its educational initiatives to assist Hong Kong businessmen who have dealings with China. The Community Relations Department has already begun to formulate advice for Hong Kong firms engaged in China
China trade on what aspects they should be Such advice alerted to as far as corruption is concerned. will be contained in an annexe to existing ICAC educational packages on corruption prevention for various business sectors.
38.
The Commission's longer term plan is to deploy additional manpower to set up a special China liaison unit to conduct indepth study of the problem of cross-border corruption and to develop further services for Hong Kong businessmen engaged in China trade.
(Note
:
The information paper distributed earlier to Members of the LegCo Security Panel is attached at Annex III.)
1993 ICAC Annual Survey...
39.
The second ICAC annual survey in the form of telephone interviews was conducted in late April by the Community Relations Department for the purpose of obtaining readings on public perception of the problem of corruption and of the ICAC.
40.
Some important findings of the survey include :
Current and future corruption scene
a)
b)
c)
25.6% believed there was a high incidence of corruption in a number of Government departments
(12.5% in 1992);
55.7% perceived business sector corruption as very prevalent/prevalent (41.1% in 1992);
62.1% thought corruption would increase because of 1997 (37.1% in 1992 and 20.6% in 1990);
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