Academic wanted over HK$4m sales fraud

Ex-professor accused of hiding his financial interests in firms that sold goods to HKUST

A former professor is wanted by the ICAC for allegedly conspiring to conceal his financial interests in two companies that sold HK$4 million worth of goods to the university where he once worked.

A court issued an arrest warrant last Friday for Yeung Lam-lung, a former adjunct associate professor in the chemistry department at Hong Kong University of Science and Technology (HKUST). According to authorities, he has left the city.

Yeung, 58, faces 17 charges – three of conspiracy to defraud and 14 of fraud, according to the Independent Commission Against Corruption.

Two people linked to the case – Au Yeung Siu-fung, 42, sole director and shareholder of Chun Fo (Asia) Pharmaceutical, and Yeung Siu-on, 40, sole director and shareholder of PIT Limited – were charged with the same offences last month.

The watchdog said yesterday the alleged offences took place between September 2011 and February 2019.

During this period, Yeung Lam-lung conducted 17 tendering and procurement exercises for the university and its subsidiary to purchase laboratory equipment and testing services from the two companies in which “he had direct or indirect financial interests”, the ICAC said.

In accordance with university regulations, the adjunct associate professor was required to declare any conflict of interest with suppliers before engaging them. Likewise, suppliers are required to declare the interests of buyers.

The ICAC alleges that Yeung Lam-lung persuaded the university to engage Chun Fo (Asia) Pharmaceutical and PIT Limited in three tendering and procurement exercises, causing the university to settle the invoices of the two suppliers in full while concealing his interest in the two suppliers.

“The 17 tendering and procurement exercises involved payments totalling about HK$4 million,” the agency said.

The case arose from a corruption complaint. Upon completion of the investigation, legal advice was sought from the Department of Justice, which recommended charging the trio.

Au Yeung Siu-fung and Yeung Siu-on had their case adjourned to October 27.

Without commenting on individual cases, HKUST said it had a strict declaration of interest policy in its procurement procedures that required all organisations to declare any interests they might have in the matter being considered.

It added that it had zero tolerance for corruption and fraud and would cooperate with the authorities on all investigations.