ENG-2010 — Page 392

330 | Public Order

Corruption Situation

The corruption situation in Hong Kong remains stable. The ICAC received 3 427 corruption reports (excluding election-related complaints) - a 1 per cent decrease from 2009. Sixty-four per cent or 2 181 reports involved the private sector, 30 per cent or 1 024 reports concerned government departments while the remaining 6 per cent or 222 reports were against public bodies. The number of pursuable reports increased by 5 per cent to 2 663.

In 2010, the ICAC received 47 election-related reports, mostly alleging minor and technical breaches of the Elections (Corrupt and Illegal Conduct) Ordinance.

Enforcement

The Operations Department investigates pursuable reports of corruption in accordance with the law. The department enhances systematically its professional capability, unearths unreported cases and brings the perpetrators to justice.

Major cases investigated by the department were mainly related to allegations. of corruption and misconduct involving public servants; commercial fraud, stock listing improprieties, fraudulent insurance claims and bank loan scams facilitated by corruption; and kickback scams in the catering industry.

At year's end, the caseload stood at 1 869, including 30 election-related cases. During the year, 393 people were prosecuted for corruption and related offences while 30 were cautioned for minor offences on the advice of the Department of Justice. Of the prosecutions completed during the year, 88 per cent resulted in convictions.

To ensure full compliance with the requirements under the Interception of Communication and Surveillance Ordinance, the department continued to strengthen staff training on related legal and administrative procedures and held 13 briefings and workshops during the year.

Prevention

The Corruption Prevention Department examines procedures and practices in government departments and public bodies and recommends measures to close loopholes conducive to corruption. It also helps private organisations enhance governance and internal control by offering free consultancy service.

The department's ambit covers many areas, including procurement, licensing and inspection systems, public works projects and law enforcement, giving priority to issues of public concern and problems revealed in investigations. In addition to 72 detailed corruption prevention studies, the department also provided expeditious advice on new policies, laws and procedures to government departments and public organisations on 488 occasions.

In response to public concern about the need for sound governance of non- governmental organisations and schools, the department produced two 'Best Practice Checklists' to help these organisations strengthen controls and enhance transparency.