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ICBC

ICBC pair jailed for accepting client's gift

PUBLISHED : Thursday, 25 August, 2011, 12:00am
UPDATED : Thursday, 25 August, 2011, 12:00am

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Two former executives of ICBC's Hong Kong unit who took HK$5.8 million in cash and gifts of fine wine and a luxury watch from a client seeking more than HK$2 billion in loans were jailed yesterday.

Derick Chan Po-fui, 51, who was the lender's head of corporate banking when the offences occurred, was jailed for two years by the District Court. His subordinate Chan Yick-yiu, 44, formerly the bank's head of real estate and finance, was jailed for three years, a spokesman for the Independent Commission Against Corruption said.

Derick Chan had admitted two charges of taking bribes, while Chan Yick-yiu was found guilty of four counts of taking bribes and five of conspiring to handle crime proceeds.

The court had earlier heard that a corporate client, mainland businessman Zeng Wei, 48, had applied for loans of US$65 million and HK$200 million from ICBC (Asia), the bank's Hong Kong unit, in August 2006 and March 2007. The loans, for Kostar Investments, which Zeng ran, were approved, based on favourable credit proposals from Chan Yick-yiu.

Then, in October 2007, Zeng was allowed to borrow HK$2 billion for his company Shine City International, based on a favourable credit proposal endorsed by the pair.

Zeng applied six times to defer repayment of the Kostar loans, and his applications were endorsed by the two accused. An application to defer repayment of the Shine City loan was endorsed by Derick Chan in 2009.

The court heard that Derick Chan accepted HK$1 million and HK$2.3 million in cash from Zeng in August 2009 and October 2010 for his help. Chan Yick-yiu accepted five bottles of wine worth HK$14,500, a watch worth HK$33,000, and HK$500,000 and HK$2 million in cash from Zeng between 2007 and 2009

Zeng has also been charged, but failed to attend a July 4 hearing. A warrant was issued for his arrest.

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