Top banker took bribes worth over HK$2.5m

PUBLISHED : Sunday, 14 August, 2011, 12:00am
UPDATED : Sunday, 14 August, 2011, 12:00am


A former senior bank executive accepted bottles of fine wine, a luxury watch and bribes worth HK$2.5 million from clients whose loan applications he was considering.

Chan Yick-yiu, 44, former head of real estate and finance for Industrial and Commercial Bank of China (Asia), was found guilty on nine counts at the District Court, on charges by the Independent Commission Against Corruption. He will be sentenced on Tuesday for bribery and handling proceeds of crime.

'While still working for ICBC (Asia), Chan Yick-yiu and Zeng Wei reached the understanding that Chan would be rewarded later for what he did,' Deputy Judge Fred Sham Siu-man said.

The court heard that in 2006 and 2007 Zeng, a property developer and operator of hotels and golf courses, applied for loans of US$65 million and HK$200 million from ICBC (Asia) for his company Kostar Investments. In October 2007, Zeng applied for HK$2 billion there for another company, Shine City International.

The loans were approved by the manager of ICBC (Asia), thanks to favourable credit proposals endorsed by the defendant and his supervisor, Derick Chan Po-fui, the head of corporate banking, who earlier admitted two counts of accepting HK$1 million and HK$2.3 million in bribes from Zeng.

The court heard that Zeng applied six times to extend the repayment dates on the loans to Kostar. Three applications were approved by the pair, the others by one or other.

On separate occasions, Chan Yick-yiu received fine wine worth HK$14,500; a Bulgari watch worth HK$33,000; and two cash bribes totalling HK$2.5 million.

Derick Chan will be sentenced on Friday. Zeng failed to appear for trial on July 4 on three counts of bribing the bankers and one of conspiring to handle the proceeds of crime. The court issued an arrest warrant.