HONG KONG 2004 - Public Order

The Independent Commission Against Corruption (ICAC) is a dedicated anti-corruption agency independent of the Civil Service. Its Commissioner is directly accountable to the Chief Executive of the HKSAR.

2004 marked the 30th anniversary of the founding of the ICAC. During the year, the ICAC continued to keep corruption effectively in check through its three-pronged strategy of investigation, prevention and community education.

According to an annual survey conducted by an independent research consultancy, the Commission continued to enjoy a high degree of public confidence as an overwhelming 99 per cent of respondents expressed support for the anti-graft agency. In addition, over 70 per cent of the corruption complaints received were made non-anonymously.

The anti-graft body has continued to share its experience in fighting corruption with international counterparts. The Commissioner was invited, as the only speaker from Asia, to share Hong Kong's anti-corruption strategies at a European Union conference in Vienna, Austria in November on cooperation in fighting corruption. The Commissioner was also invited to address the China and ASEAN Countries Attorneys-General Conference held in Kunming, China, in July. Senior official delegations from Korea and Madagascar were among the anti-corruption and law enforcement agencies from various parts of the world visiting the ICAC during the year.

In 2004, the ICAC received 3 746 corruption reports (excluding election-related complaints), a drop of 13 per cent from the previous year. Of these, 1 286 were made against government departments, down from 1 541 in 2003. There were 2 176 and 284 reports concerning the private sector and public bodies respectively, compared with 2 472 and 297 in 2003. Pursuable reports accounted for 76 per cent of all corruption reports.

A total of 594 election-related reports were received in the year, 570 of which were pursuable. They included 468 reports relating to the District Council Election, 119 concerning the Legislative Council Election, and seven about the Village Representatives Election.

In 2004, the ICAC's Operations Department continued to pursue a proactive strategy in unearthing corruption cases, rendering corruption a high-risk crime. The department maintained close ties with other disciplined services through Operational Liaison Groups. Liaison channels were also established with government departments, regulatory bodies and key industries to facilitate cooperation in tackling corruption cases.

Major cases detected during the year included corruption-facilitated financial fraud involving publicly listed companies, contract and tendering malpractices, and a conspiracy to murder an ICAC witness. There were also corruption allegations involving civil servants and misconduct in public office.

At year-end, the Operations Department's case-load stood at 1 787 (including 473 investigations on election-related cases). A growing number of these cases featured a more sophisticated and complex modus operandi. During the year, 494 persons were prosecuted and 132 cautioned in accordance with the advice of the Department of Justice.

The Corruption Prevention Department examines the practices and procedures of government departments and public bodies to identify corruption loopholes, and recommends measures to minimise opportunities for corruption and malpractice.

During the year, the department completed 96 detailed corruption prevention reviews on a wide range of activities including law enforcement, public procurement, outsourcing, licensing, inspection, contract management and public works. Priority was accorded to problem areas revealed in cases uncovered by the Operations Department, and corruption-prone areas found in corruption complaints or identified through established liaison with government departments.

The department also provides expeditious corruption prevention advice to government departments and public bodies when they formulate new legislation, policies or procedures. In 2004, the department undertook such consultation work on 289 occasions. As a follow-up to the reviews, the department also conducted training workshops and seminars for government and public sector employees to assist them in enhancing internal control measures in areas like procurement, contract administration and managing conflicts of interest, and to raise awareness on corruption-prone areas.

The Advisory Services Group of the department continued to proactively provide free and confidential corruption prevention advice to private sector organisations. In 2004, the group provided tailor-made advice on 369 occasions to help strengthen internal control systems and reduce possible abuses, and organised a seminar for the property management industry to promote best practices in the sector.

To help public and private sector organisations establish anti-corruption systems, the department continued to produce Best Practice Modules on corruption-prone areas such as procurement, contract administration, staff management, outsourcing and construction.

The Community Relations Department is responsible for educating the public against the evils of corruption and enlisting the community's support in the anti-corruption drive through the media and educational programmes.

Maintaining a clean civil service remained a top priority for the department. In collaboration with the Civil Service Bureau, the department launched a two-year Civil Service Integrity Entrenchment Programme to help government departments foster a culture of probity. By the end of 2004, the department visited 25 government departments to map out tailor-made programmes to promote an ethical culture. In addition, integrity training was provided for over 18 800 civil servants of various ranks in 40 departments.

To uphold Hong Kong's competitive edge as an international financial centre, the department launched a two-year Business Ethics Promotion Programme in late 2003 to promote ethical management and good corporate governance among listed companies. In addition, a corruption prevention package was produced for businessmen engaged in cross-boundary trade. Corruption prevention seminars and workshops for the hotel industry, travel agents and retailers were organised during the year. The department also worked closely with other professional bodies, such as the Hong Kong Institute of Surveyors, Hong Kong Institute of Certified Public Accountants, and Hong Kong Securities Institute, on training on ethical practices for their members.

Youth education has been an important area of the work of the department. During the year, the department conducted workshops on corporate governance for students of tertiary education institutions, and organised a competition for students to design web characters to promote positive values in partnership with secondary schools. The department continued to promulgate positive values among young people through the mass media, the Internet, interactive drama performances and family-based programmes.

In the run-up to the Legislative Council Election in September, the department disseminated the 'Support Clean Elections' message through a media campaign, an enquiry hotline and an election website. ICAC representatives also attended briefing sessions organised by the Electoral Affairs Commission to explain the Elections (Corrupt and Illegal Conduct) Ordinance to candidates, election agents and helpers.

To mark the Commission's 30th anniversary, community-based activities were organised to sustain public support for the anti-corruption cause. These included an ICAC open day, roving exhibitions and a charity walk. Together, these activities drew over 440 000 people.

In addition, a five-episode drama series, 'ICAC Investigators 2004', based on completed ICAC cases, was broadcast in April and May. To further enhance the Commission's transparency, a web channel — the ICAC Channel — was launched in June to keep the public updated on ICAC's activities.

The ICAC maintains regular operational liaison with overseas law enforcement agencies. During the year, it received over 332 visitors to exchange experience with law enforcement agencies and other organisations from various countries.

A delegation from the Korea Independent Commission Against Corruption visited the Commission in March to study its anti-corruption strategies. In June, the ICAC shared its experience with a delegation from the Republic of Madagascar. In December, the President of the International Court of Justice called on the ICAC to learn about the latest developments in Hong Kong's anti-corruption work.

Cooperation between the ICAC and Mainland anti-corruption authorities has become increasingly important with closer economic ties between Hong Kong and the Mainland.

The ICAC and the Mainland procuratorate authorities continued to assist each other in interviewing voluntary witnesses in connection with corruption investigations under the Mutual Case Assistance Scheme. During the year, ICAC investigators visited the Mainland on 50 occasions to interview witnesses while Mainland officers visited Hong Kong for the same purpose on 68 occasions.

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 Legislative Council and other prominent citizens, monitors the handling of non-criminal complaints against the ICAC and its officers.