Chapter 18: Independent Commission Against Corruption

The Independent Commission Against Corruption (ICAC) is independent of the Civil Service. Its Commissioner is directly accountable to the Chief Executive of the 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.

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.

In 2001, the Operations Department — the ICAC's investigative arm — continued to 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.

The Corruption Prevention Department examines the practices and procedures of government departments and public bodies to identify loopholes, and makes recommendations to reform work methods to reduce the potential for graft.

During the year, the department completed 105 detailed studies targeting corruption prone areas, including purchasing and tendering, contract management, staff management, law enforcement, licensing and registration systems. Priority was given to following up on Operations Department investigations to promptly plug loopholes that had been exploited and exposed. The department also provided corruption prevention advice through 269 consultation exercises to public sector organisations as new legislation, procedures or policies were being formulated.

For the private sector, the department provided free and confidential corruption prevention advice to various companies on 300 occasions. Systems and procedures were reviewed and the companies were assisted in promulgating codes of conduct for compliance by their staff.

The department continued to produce easy-to-use 'best practices' guidebooks as a cost-effective measure to help organisations enhance their corruption prevention capability. One set of the guidelines detailed the control measures necessary for outsourcing services in the public sector, while two others focused on safeguards in procurement and staff administration procedures in government-subvented social welfare organisations.

The Community Relations Department continued to educate the public about the evils of corruption and enlist the community's support in fighting it. These work objectives were achieved through the use of mass media programmes and liaison activities run by a network of eight Regional Offices.

Maintaining an ethical culture in the Civil Service remained a top priority for the department. The two-year Civil Service Integrity Programme, jointly organised with the Civil Service Bureau, closed in March. Under this programme, the department assisted 67 government departments in reviewing and drawing up departmental guidelines and codes of conduct and mapping out tailor-made preventive education training programmes.

As part of the two-year Leadership Integrity Programme jointly organised with banking regulators and related professional bodies, the department hosted a conference for over 200 senior bank executives in March to promote greater vigilance in combating the corruption problem. A practical ethical guide for bank managers was produced and more than 100 major banks had joined a Corruption Prevention Network established for compliance officers and internal auditors to share their views on corruption and compliance issues in the industry.

The department, together with information technology-related professional bodies and major chambers of commerce, held a conference in November to promote fairness and high ethical standards within the IT trade.

The Building Management Task Force joined hands with government departments and professional bodies in implementing corruption prevention programme for owners' corporations, mutual aid committees and residents.

In youth education, the department continued to cultivate positive values among young people through the mass media and the Internet in addition to classroom talks. In May, the department launched a Hong Kong-wide 'family-based project' featuring a series of parenting seminars and district projects.

To further enhance the transparency of the ICAC, the department revamped the commission's corporate web site (http://www.icac.org.hk) in July through enrichment of contents and the provision of new navigation and information searching tools.

During the year, the ICAC received a total of 313 visitors from law enforcement agencies and other organisations from various countries.

ICAC officers also participated in a number of overseas conferences. A high-level delegation led by the Commissioner attended the 10th International Anti-Corruption Conference held in Prague, Czech Republic, in October. The Commissioner also chaired a workshop on the importance of an honest police force with panel members drawn from law enforcement agencies from various jurisdictions. In November, the Commissioner gave a speech on the importance of cross-jurisdictional efforts against transnational organised crime at the Regional Conference of Attorneys-General of Countries in Asia and Europe held in Guangzhou.

In May, the ICAC's Head of Operations addressed the second Global Forum on Fighting Corruption and Safeguarding Integrity in The Hague, Netherlands. The forum was a government-organised meeting aimed at mobilising international efforts against corruption.

Co-operation and mutual assistance between the ICAC and the People's Procuratorates in the Mainland continued to gather momentum in view of closer social and economic ties. Under the Mutual Case Assistance Scheme with the Mainland, ICAC investigators visited the Mainland on 175 occasions and Mainland officers were assisted on 311 occasions in making enquiries in Hong Kong.

During the year, the Community Relations Department also conducted anti-corruption talks for about 6 700 Mainland officials visiting Hong Kong.

The operation of the ICAC is subject to a stringent system of checks and balances.

Apart from judicial supervision, the commission's work is scrutinised by four advisory committees — the Advisory Committee on Corruption, the Operations Review Committee, the Corruption Prevention Advisory Committee and the Citizens Advisory Committee on Community Relations.

An independent ICAC Complaints Committee, which comprises members of the Executive and Legislative Councils and other prominent citizens, monitors the handling of complaints against the ICAC and its officers. The ICAC also has an internal investigation group that oversees the conduct of its officers and investigates complaints made against them.