Graft agency says its hands are tied on mainland but warns companies to 'uphold their integrity'
CHRISTY LEUNGchristy.leung@scmp.com
PUBLISHED : Monday, 30 November, 2015, 12:02am
UPDATED : Monday, 30 November, 2015, 12:02am
ICAC said anti-graft work on the mainland was beyond its authority. Photo: SCMP Pictures
The city's graft-buster has said it is facing a surge in the number of requests for advice from local enterprises operating on the mainland, but admitted its hands were tied when it came to cross-border bribery.
The Independent Commission Against Corruption said more local companies were seeking tailor-made advice and codes of conduct from the watchdog on dealing with corruption before heading north.
"Mainlanders hold different concepts to us on conflict of interest," said Tse Man-shing, director of corruption prevention. "It is all about relationships when you do business in China, instead of the rule of law. Local firms feel lost when entering the mainland."
READ MORE: Hong Kong's ICAC steps up cooperation with mainland Chinese anti-graft counterparts
Tse said the department had long been fulfilling its statutory duty of offering industry-specific advice on corruption prevention. Many corporations fly their mainland employees to Hong Kong for seminars on how to prevent graft.
But Tse said measures prescribed in Hong Kong were not bound by mainland law. Instead, he advised firms to "uphold their integrity" on the mainland, saying that was all they could do under the circumstances.
"Do not wallow in the mire to accommodate the cultural differences. Malpractice erodes reputations and business."
President Xi Jinping has been touting a nationwide anti-corruption drive aimed at waging war on graft and cleaning up the Communist Party since he came to power in 2013.
The ICAC, however, does not see any role for itself across the border, since work on the mainland is beyond its authority.
Tse said several state-owned enterprises had approached the department when setting up operations in Hong Kong, but he refused to disclose any names due to privacy concerns.
READ MORE: Pro-Beijing lawyer Kennedy Wong faces ICAC bribery charges
"They are constrained by the Prevention of Bribery Ordinance in Hong Kong. We explain the legal differences to them. For example, they could give red pocket money to public bodies on the mainland, but not here."
A solicitor familiar with white-collar crime said anti-corruption awareness was high among state-owned enterprises, but not among private mainland companies working in Hong Kong.
"Many of my Chinese clients thought money could solve all problems," he said.
"They often asked me if there were 'easy' ways to establish good relations with enforcement agencies, so they could solve problems in a 'convenient' way. You know the implications."
The watchdog said more than 7,000 organisations had obtained its advisory services since 1985, of which 32 per cent were from the service industries.
http://m.scmp.com/news/hong-kong/law-crime/article/1885045/more-hong-kong-firms-seek-icac-advice-graft-they-head
