Role of IT Professionals in Corruption Prevention

1. C o m m u n i t y R e l a t i o n s D e p a r t m e n t 社 區 關 係 處 Role of IT Professionals inCorruption Prevention

2. C o m m u n i t y R e l a t i o n s D e p a r t m e n t 社 區 關 係 處 Contents • Corruption scene of Hong Kong • IT – a double-edged sword • Legal and ethics issues • ICAC’s services

3. C o m m u n i t y R e l a t i o n s D e p a r t m e n t 社 區 關 係 處 Corruption in Hong Kong • Under control

4. C o m m u n i t y R e l a t i o n s D e p a r t m e n t 社 區 關 係 處 Corruption in Hong Kong • Challenges– professionalised– insider’s dishonesty– cross boundary– IT advancement

5. C o m m u n i t y R e l a t i o n s D e p a r t m e n t 社 區 關 係 處 IT : Double–edged Sword • Constructive? • Destructive?

6. C o m m u n i t y R e l a t i o n s D e p a r t m e n t 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

7. C o m m u n i t y R e l a t i o n s D e p a r t m e n t 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

8. C o m m u n i t y R e l a t i o n s D e p a r t m e n t 社 區 關 係 處 ICAC File • IT experts breaking the safeguards? • Syndicated corruption in the workforce? • Unreliable vendor?

9. C o m m u n i t y R e l a t i o n s D e p a r t m e n t 社 區 關 係 處 A Simple Trick of“Click-Click” • Double click to disable the system from recording the transaction

10. C o m m u n i t y R e l a t i o n s D e p a r t m e n t 社 區 關 係 處 Corruption An act of abuse of trust

11. C o m m u n i t y R e l a t i o n s D e p a r t m e n t 社 區 關 係 處 Prevention of Bribery Ordinance • Prevent breach of trust • Protect interest of stakeholders • Ensure fair-play

12. C o m m u n i t y R e l a t i o n s D e p a r t m e n t 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)

13. C o m m u n i t y R e l a t i o n s D e p a r t m e n t 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)

14. C o m m u n i t y R e l a t i o n s D e p a r t m e n t 社 區 關 係 處 Entertainment It refers to food or drink for immediate consumptionon anyoccasion.

15. C o m m u n i t y R e l a t i o n s D e p a r t m e n t 社 區 關 係 處 Case Study Unusual Conflict 非常衝突

16. C o m m u n i t y R e l a t i o n s D e p a r t m e n t 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 ?

17. C o m m u n i t y R e l a t i o n s D e p a r t m e n t 社 區 關 係 處 Conflict of Interest • Dubious relationship • Favouritism to suppliers • Recruitment of relatives

18. C o m m u n i t y R e l a t i o n s D e p a r t m e n t 社 區 關 係 處 Ethical Decision Making • Abide by the law • Comply with company / professional regulations • Uphold ethical standard

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

20. C o m m u n i t y R e l a t i o n s D e p a r t m e n t 社 區 關 係 處 Put Ethics in Practice • Issue clear guidelines • Establish effective system • Encourage whistle-blowing

21. C o m m u n i t y R e l a t i o n s D e p a r t m e n t 社 區 關 係 處 Corruption in Hong Kong • Soft corruption– conflicts of interest– wine & dine– indebtedness

22. C o m m u n i t y R e l a t i o n s D e p a r t m e n t 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

23. C o m m u n i t y R e l a t i o n s D e p a r t m e n t 社 區 關 係 處 Use of IT inEthics Management • Timely • Paperless • Open door

24. Reports / Enquiries ICAC Report Centre or 7 Regional Offices 25 266 366 (24hrs) GPO Box 1000, HK

25. For Preventive Services, Enquiry & Report Regional Office (Kowloon West) Community Relations Department ICAC ADD: G/F Nathan Commercial Building, 434-436 Nathan Road, Kowloon TEL: 2780 8080

26. C o m m u n i t y R e l a t i o n s D e p a r t m e n t 社 區 關 係 處 HK Ethics Development Centre Website www.icac.org.hk/hkedc

27. C o m m u n i t y R e l a t i o n s D e p a r t m e n t 社 區 關 係 處 Thank You!

28. C o m m u n i t y R e l a t i o n s D e p a r t m e n t 社 區 關 係 處 Constructive Use of IT • Honest people • Reliable system • Best practices • Ethics culture