Community Relations Department 社區關係處 Role of IT Professionals in Corruption Prevention

Community Relations Department 社區關係處 Contents  Corruption scene of Hong Kong  IT – a double-edged sword  Legal and ethics issues  ICAC’s services

Community Relations Department 社區關係處 Corruption in Hong Kong  Under control

Community Relations Department 社區關係處 Corruption in Hong Kong  Challenges – professionalised – insider’s dishonesty – cross boundary – IT advancement

Community Relations Department 社區關係處 IT : Double–edged Sword  Constructive?  Destructive?

Community Relations Department 社區關係處 The Invisible Stealing Hands  A computer operator of a bank  Transferred the “non-recorded” interest from 20 inactive deposit accounts to his personal account  Stole $500,000

Community Relations Department 社區關係處 ICAC File  Add value transaction of Octopus card  4 station officers tampered with e-ticketing system  no trace of – $ value added – $ proceeds registered  Embezzled $200,000

Community Relations Department 社區關係處 ICAC File  IT experts breaking the safeguards?  Syndicated corruption in the workforce?  Unreliable vendor?

Community Relations Department 社區關係處 A Simple Trick of “Click-Click”  Double click to disable the system from recording the transaction

Community Relations Department 社區關係處 Corruption An act of abuse of trust

Community Relations Department 社區關係處 Prevention of Bribery Ordinance  Both offer and recipient of a bribe are guilty  Government  Public bodies  Private sector

Community Relations Department 社區關係處 Prevention of Bribery Ordinance  Prevent breach of trust  Protect interest of stakeholders  Ensure fair-play

Community Relations Department 社區關係處 PBO – 4As  Agent (employee)  Accepts/solicits Advantages  An Act in relation to principal’s (employer’s) business  Without principal’s Approval (Max. penalty : 7 years’ imprisonment & $500,000 fine)

Community Relations Department 社區關係處 Advantage  Gift, loan, fee, reward, commission  Employment or contract  Payment, release or discharge of loan or liability  Service or favour (except entertainment)

Entertainment It refers to food or drink for immediate consumption on any occasion. Community Relations Department 社區關係處

Unusual Conflict 非常衝突 Case Study Community Relations Department 社區關係處

Community Relations Department 社區關係處 Unusual Conflict  Can you identify any conflict of interest situations ?  If you were David, would you take Alex’s suggestion ?  What can you do to avoid such malpractice ?

Community Relations Department 社區關係處 Conflict of Interest  Dubious relationship  Favouritism to suppliers  Recruitment of relatives

Community Relations Department 社區關係處 Ethical Decision Making  Abide by the law  Comply with company / professional regulations  Uphold ethical standard

Community Relations Department 社區關係處 Conflict of Interest  Outside employment  Clients’/Business associates’ investment in a company in which you have a financial interest  Diverting company business to personal business/business of close friends or relatives

Professional /Business Ethics Ethics (highest or optimum standard) Legislation (lowest or minimum standard)

Community Relations Department 社區關係處 Put Ethics in Practice  Issue clear guidelines  Establish effective system  Encourage whistle-blowing

Community Relations Department 社區關係處 Corruption in Hong Kong  Soft corruption – conflicts of interest – wine & dine – indebtedness

Community Relations Department 社區關係處 The Dos  Declare to the employer  Follow the “doubt” principle  Don’t place yourself in a position of obligation – frequent & excessive entertainment – indebtedness

Community Relations Department 社區關係處 The Dos  Know the anti-corruption laws  Follow company’s policy  Properly handle conflict of interest  Be self controlled – wine & dine, indebtedness, etc

Community Relations Department 社區關係處 Use of IT in Ethics Management  Timely  Paperless  Open door

Reports / Enquiries ICAC Report Centre or 7 Regional Offices (24hrs) GPO Box 1000, HK

Regional Office (Kowloon West) Community Relations Department ICAC ADD: G/F Nathan Commercial Building, Nathan Road, Kowloon TEL: For Preventive Services, Enquiry & Report

HK Ethics Development Centre Website Community Relations Department 社區關係處

Community Relations Department 社區關係處 Thank You!

Community Relations Department 社區關係處 Constructive Use of IT  Honest people  Reliable system  Best practices  Ethics culture