ENG-2001 — Page 407

PUBLIC ORDER

HKSAR. During the year, the ICAC continued its three-pronged approach to tackle corruption through investigation, prevention and community education.

Parallel to strict law enforcement, the commission strives to fortify a culture of probity and promote best practices in various trades and government departments. At the same time, it gives tailor-made advice on corruption prevention measures to these establishments.

During the year, a rise in corruption-related cases in the banking and finance sectors, coupled with a high level of corruption reports on building management, had caused public concern. The commission responded by forming special task groups, comprising officers from the Operations Department, Corruption Prevention Department and the Community Relations Department, to provide focused and comprehensive anti-corruption services for industry practitioners.

Corruption Situation

In 2001, the ICAC received 4 476 reports alleging corruption (excluding election- related reports). Of these, 1 587 were made against civil servants, compared with 1 732 in 2000. There were 2 542 reports concerning the private sector, up from 2 402 in 2000. Reports against public bodies reached 347, representing a 36 per cent year- on-year increase. A total of 3 261 corruption reports were pursuable.

Based on the ICAC's analysis, the high level of private sector corruption reports could be attributed in part to the residual effects of the Asian financial crisis, the impact of a global economic downturn and a growing public vigilance in combating the crime.

Investigation

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In 2001, the Operations Department - the ICAC's investigative arm pursue a proactive strategy in tackling corruption by forging closer links with all disciplined services and government departments through Operational Liaison Groups. Liaison channels have also been established with other regulatory bodies and key industries.

The department continued to enhance its professional capability to cope with a rising workload and new challenges brought about by advanced information technology. It continued to collaborate with local universities, the private sector and other law enforcement agencies in providing computer forensic training courses for investigators, and to develop standard computer investigation procedures.

Major investigations during the year included money laundering, short piling in public housing construction and other substandard construction works, letter of credit frauds involving banks and listed companies' staff, illegal bookmaking, insurance frauds, and corruption allegations involving civil servants.

During the year, 535 persons were prosecuted and 85 cautioned as directed by the Department of Justice. The department's caseload remained at a high level of 1 861 at the end of the year, many of which epitomised the growing complexity of corruption crime.

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