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Independent Commission Against Corruption (Hong Kong)
Encyclopedia
The Independent Commission Against Corruption (ICAC; ; and before 1997) of Hong Kong was established by Governor
Murray MacLehose on 15 February 1974, when Hong Kong was under British rule
. Its main aim was to clean up endemic corruption
in the many departments of the Hong Kong Government through law enforcement, prevention and community education. The ICAC is headed by the Commissioner.
Since the transfer of sovereignty in 1997, the Commissioner of ICAC is appointed by the State Council of the People's Republic of China
, on the recommendations of the Chief Executive of Hong Kong
.
The ICAC is independent of the Hong Kong Civil Service
. The Basic Law of Hong Kong stipulates that the ICAC shall function independently and be accountable to the Chief Executive. Previous appointments were made by the Governor of Hong Kong
and the same office to which the agency reported to.
The Hong Kong Police had previously had an Anti-Corruption Branch, but it did little to reduce corruption. There was a public perception that Anti Corruption cops essentially, following the discovery of corrupt practices, would then enter into dodgy dealings themselves. A particular example was Peter Fitzroy Godber
, a senior officer stationed at Wanchai police station and later at Kai Tak Airport
police station. Before his retirement in 1973, he had amassed no less than 4.3 million Hong Kong Dollars (approximately 600,000 US Dollars) in overseas bank accounts. The police's Anti-Corruption Branch investigated his mysterious wealth and ordered him to explain his source of income. In response, Godber immediately arranged for his wife to leave the colony, then he used his police airport pass to bypass Immigration and Passport checks and walked onto a plane for London. Godber's escape led to a large public outcry over the integrity and quality of the police's self-investigation and called for reforms in the government's anti-corruption efforts. Godber was later extradicted back to HK to face trial and convicted.
The newly-formed Independent Commission Against Corruption was created to root out corruption; unlike the old police Anti-Corruption Branch, the new ICAC would be answerable to only the Governor of Hong Kong
. Local cynics first joked that "ICAC" stood for "Investigating Chinese Ancient Customs" or even "I Can Accept Cash". Most ICAC operations staff were sergeants recruited from specifically UK police forces and were certainly not beyond sharp practices themselves. Their tactics and methods were often crude and aggressive in the extreme, often they would sweep down to a police station and take an entire shift in for questioning. Such questioning was often just a 'fishing exercise'. Ultimately though their shock tactics were effective.
In the early days there were running punch-ups between ICAC officers and angry policemen who stormed their offices in Central District
; this situation ended only with the announcement of a partial amnesty for minor corruptions committed before 1977. But gradually, the ICAC made itself felt and several high profile police officers were tried and convicted. Others were forced to retire. As a result of its investigations, a mass purge took place in early 1978, where it was announced that 119 officers including one customs official were asked to leave under the provisions of Colonial Regulation 55 (see footnote 1 below) to fast track the decisions in the public interest; a further 24 officers were held on conspiracy charges, 36 officers and a customs official were given amnesties. The move received a mixed response from the public whilst being broadly supported by legislative councillor
s as being in the best interests of Hong Kong not to let the affair fester and further demoralise the police Force. Urban Council member Elsie Elliot criticised the government for being lenient to senior corrupt officials, punishing only "small flies."
Hong Kong has been transformed from a graft-ridden city into one of the cleanest places in the world, as recognised by international institutions such as the World Bank, the Heritage Foundation and the Transparency International. Some countries have looked up to the ICAC as an effective model of combating graft holistically through detection, prevention and education.
In the 1970s, eight out of 10 graft complaints were against public officers. This trend has reversed over the years. Complaints against police officers reduced by 70% - from 1,443 in 1974 to 446 in 2007. Nowadays, only three out of 10 complaints relate to public servants. Private sector cases meanwhile have been on the rise in recent years. The ICAC has stepped up efforts to help enterprises minimise corruption risks through system controls and staff training. [The statistics are provided by the ICAC.]
In 2008, corruption reports received by the ICAC dropped six per cent to 3,377, of which 65 per cent were related to the private sector, 28 per cent concerned government departments, and the remaining seven per cent were against public bodies.
Research on corruption - carried out by the Anti Corruption Resource Centre - shows that police corruption in Hong Kong was frequently associated with 'illegal markets' or 'victimless crimes' such as gambling, prostitution and drugs. Thus, the decision to legalise off-course betting in Hong Kong - a previously rich source of police bribes - may plausibly have contributed to the fall in police corruption. The investigative, preventive and educational activities of the ICAC no doubt also had some impact but was not solely or even largely responsible for reducing police corruption.
A year later at Christmas 1995 an ICAC assistant director - a well known carouser - was arrested for drinking and driving. Following conviction he mysteriously avoided strong punishment and received only a 'reprimand' from the Commissioner of the ICAC.
In preparation for Hong Kong's reunification with China in 1997, the National People's Congress of the People's Republic of China enacted the Hong Kong Basic Law
in 1990, providing for the establishment of a "Commission Against Corruption". This anti-graft agency thus subsists as a constitution
ally sanctioned body.
As a passing remark the name of the agency ("Independent Commission against Corruption") has been questioned as unconstitutional, as the Basic Law names it "Commission Against Corruption". However, as the Chinese version of the Basic Law prevails over the English version, this is not considered a misnomer. Another interpretation is that the Basic Law states only that such a commission has to be established without directing how it should be named.
To address the lack of legal procedures that govern covert surveillance by law enforcement agencies, as required by the Basic Law, the LegCo passed the Interception of Communication and Surveillance Ordinance (ICSO) in August 2006 to provide for such procedures. All covert surveillance operations of the ICAC are now carried out strictly in accordance with the ICSO which applies to all law enforcement agencies in Hong Kong.
An assistant ICAC investigator was jailed for 9 months on 4 April 2003 for lying in a court trial, to conceal the fact that he had threatened a suspect to co-operate with a probe by the Independent Commission Against Corruption (ICAC).
So far, this is the only case of such a nature in ICAC history.
The ICAC has three divisions: Operations, Community Relations, and Corruption Prevention. The Operations department is the largest by far, has 72 percent of the staff, and is responsible for all the high-profile busts. This largest department considers itself all powerful, and has apparently resisted all attempts to interfere with its investigations. The exercise of its power has allegedly relegated the Commissioner to a figurehead role. The investigation into circulation fraud by Sally Aw
at The Standard
has been cited as an example of the embarrassment caused by such non-cooperation with the government hierarchy.
was not obliged to give cause. It stipulated that "An officer holds office subject to the pleasure of the Crown
, and the pleasure of the Crown that he may no longer hold it may be signified through the Secretary of State
, in which case no special formalities are required."
As a safeguard for this regulation, action must be taken by the Secretary of State for Foreign and Commonwealth Affairs
in London after review by the Secretary of the Civil Service and the British Attorney General
. The highest authority would have been the Lord Chancellor
.
This regulation was invoked approximately 25 times by the colonial Government up to 1978, twice of which was during the tenure of Governor MacLehose.
Henry Litton
, Chairman of the Hong Kong Bar Association
questioned the use of Regulation 55, when Regulations 56 and 57 (which provides for "dismissal after due enquiry" before a judge) could have been used. He furthermore said " As far as I know, Colonial Regulations apply to only sovereign gazetted officers", and that "no Chinese policeman has ever been given a copy ...before signing on". Most Legislators supported the move as being under "exceptional circumstances" and "necessary".
The Colonial Regulation has been replaced by the Public Service Order after Hong Kong's transfer of sovereignty to China in 1997.
the strategic importance of information technology (IT) in operations as corruption cases have become increasingly complex. The commission has stepped up staff training in financial investigation and computer forensics skills, and enhanced investigative resources especially in regard to corruption in the private sector
.
In 2008, the commission organised a series of seminars to enhance the investigators' knowledge on the global and local financial system and its regulatory mechanism.
ICAC's financial investigation section probed into 7,095 financial transactions in 168 cases, involving an aggregated sum of HK$4.4 billion (US$567 million) in 2008. The commission's computer forensics section carried out 502 computer data analysis projects relating to 111 operations in which 368 computers were seized.
in 2009 that tell the history of the ICAC from the inception to how it adopted its interrogation methods.
Governor of Hong Kong
The Governor of Hong Kong was the head of the government of Hong Kong during British rule from 1843 to 1997. The governor's roles were defined in the Hong Kong Letters Patent and Royal Instructions...
Murray MacLehose on 15 February 1974, when Hong Kong was under British rule
Colonial Hong Kong
In the 19th century the British, Dutch, French, Indians and Americans saw Imperial China as the world's largest untapped market. In 1840 the British Empire launched their first and one of the most aggressive expeditionary forces to claim the territory that would later be known as Hong Kong.In a few...
. Its main aim was to clean up endemic corruption
Political corruption
Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...
in the many departments of the Hong Kong Government through law enforcement, prevention and community education. The ICAC is headed by the Commissioner.
Since the transfer of sovereignty in 1997, the Commissioner of ICAC is appointed by the State Council of the People's Republic of China
State Council of the People's Republic of China
The State Council of the People's Republic of China , which is largely synonymous with the Central People's Government after 1954, is the chief administrative authority of the People's Republic of China. It is chaired by the Premier and includes the heads of each governmental department and agency...
, on the recommendations of the Chief Executive of Hong Kong
Chief Executive of Hong Kong
The Chief Executive of Hong Kong is the President of the Executive Council of Hong Kong and head of the Government of the Hong Kong Special Administrative Region. The position was created to replace the Governor of Hong Kong, who was the head of the Hong Kong government during British rule...
.
The ICAC is independent of the Hong Kong Civil Service
Hong Kong Civil Service
The Hong Kong Civil Service is managed by 12 policy bureaux in the Government Secretariat, and 67 departments and agencies, mostly staffed by civil servants. The Secretary for the Civil Service is one of the Principal Officials appointed under the Accountability System and a Member of the...
. The Basic Law of Hong Kong stipulates that the ICAC shall function independently and be accountable to the Chief Executive. Previous appointments were made by the Governor of Hong Kong
Governor of Hong Kong
The Governor of Hong Kong was the head of the government of Hong Kong during British rule from 1843 to 1997. The governor's roles were defined in the Hong Kong Letters Patent and Royal Instructions...
and the same office to which the agency reported to.
Background
As Hong Kong got back on its feet after WWII, the population began to swell and manufacturing industries grew, and by the 1960s Hong Kong was experiencing economic growth. Against this background the government kept Civil Service salaries very low, and so it was probably no surprise that officials in all departments took advantage of their positions to supplement their wages with demands for 'tea money', 'lucky money' or substantially larger sums. Examples of corruption ranged from nursing sisters demanding money to provide extra blankets and/or food or to allow visitors outside normal hours, firemen lived by the saying, 'Mo chin mo sui' (no money no water) and in fact sometimes asked for money to turn off the water, preventing water damage, once a fire had been put out; officials in Lands and Public Works departments secured huge sums of money for 'advice' and 'signatures' that procured the award of tenders and enabled developments and projects to proceed; the Royal Hong Kong Police was also in on the act and entire stations were organised to 'make money' from hawkers, licences and in many other illicit schemes. Civil servants often had to pay for promotions and postings in positions known for a lucrative return. HK was awash with money, and poorly paid civil servants made sure that their wages were supplemented by it. That is not to say that those in private business/employment - from bankers to exporters from taxi drivers to restaurant workers - were scrupulously clean, the whole of Hong Kong was on the take.The Hong Kong Police had previously had an Anti-Corruption Branch, but it did little to reduce corruption. There was a public perception that Anti Corruption cops essentially, following the discovery of corrupt practices, would then enter into dodgy dealings themselves. A particular example was Peter Fitzroy Godber
Peter Fitzroy Godber
Peter Fitzroy Godber was Kowloon's Deputy District Commissioner of the Royal Hong Kong Police Force and was caught in a bribery scandal after his retirement in 1973. He fled Hong Kong , but he was later captured and sent back to Hong Kong for trial...
, a senior officer stationed at Wanchai police station and later at Kai Tak Airport
Kai Tak Airport
Kai Tak Airport was the international airport of Hong Kong from 1925 until 1998. It was officially known as the Hong Kong International Airport from 1954 to 6 July 1998, when it was closed and replaced by the new Hong Kong International Airport at Chek Lap Kok, 30 km to the west...
police station. Before his retirement in 1973, he had amassed no less than 4.3 million Hong Kong Dollars (approximately 600,000 US Dollars) in overseas bank accounts. The police's Anti-Corruption Branch investigated his mysterious wealth and ordered him to explain his source of income. In response, Godber immediately arranged for his wife to leave the colony, then he used his police airport pass to bypass Immigration and Passport checks and walked onto a plane for London. Godber's escape led to a large public outcry over the integrity and quality of the police's self-investigation and called for reforms in the government's anti-corruption efforts. Godber was later extradicted back to HK to face trial and convicted.
The newly-formed Independent Commission Against Corruption was created to root out corruption; unlike the old police Anti-Corruption Branch, the new ICAC would be answerable to only the Governor of Hong Kong
Governor of Hong Kong
The Governor of Hong Kong was the head of the government of Hong Kong during British rule from 1843 to 1997. The governor's roles were defined in the Hong Kong Letters Patent and Royal Instructions...
. Local cynics first joked that "ICAC" stood for "Investigating Chinese Ancient Customs" or even "I Can Accept Cash". Most ICAC operations staff were sergeants recruited from specifically UK police forces and were certainly not beyond sharp practices themselves. Their tactics and methods were often crude and aggressive in the extreme, often they would sweep down to a police station and take an entire shift in for questioning. Such questioning was often just a 'fishing exercise'. Ultimately though their shock tactics were effective.
Development
Central, Hong Kong
Central is the central business district of Hong Kong. It is located in Central and Western District, on the north shore of Hong Kong Island, across Victoria Harbour from Tsim Sha Tsui, the southernmost point of Kowloon Peninsula...
; this situation ended only with the announcement of a partial amnesty for minor corruptions committed before 1977. But gradually, the ICAC made itself felt and several high profile police officers were tried and convicted. Others were forced to retire. As a result of its investigations, a mass purge took place in early 1978, where it was announced that 119 officers including one customs official were asked to leave under the provisions of Colonial Regulation 55 (see footnote 1 below) to fast track the decisions in the public interest; a further 24 officers were held on conspiracy charges, 36 officers and a customs official were given amnesties. The move received a mixed response from the public whilst being broadly supported by legislative councillor
Legislative Council of Hong Kong
The Legislative Council is the unicameral legislature of Hong Kong.-History:The Legislative Council of Hong Kong was set up in 1843 as a colonial legislature under British rule...
s as being in the best interests of Hong Kong not to let the affair fester and further demoralise the police Force. Urban Council member Elsie Elliot criticised the government for being lenient to senior corrupt officials, punishing only "small flies."
Hong Kong has been transformed from a graft-ridden city into one of the cleanest places in the world, as recognised by international institutions such as the World Bank, the Heritage Foundation and the Transparency International. Some countries have looked up to the ICAC as an effective model of combating graft holistically through detection, prevention and education.
In the 1970s, eight out of 10 graft complaints were against public officers. This trend has reversed over the years. Complaints against police officers reduced by 70% - from 1,443 in 1974 to 446 in 2007. Nowadays, only three out of 10 complaints relate to public servants. Private sector cases meanwhile have been on the rise in recent years. The ICAC has stepped up efforts to help enterprises minimise corruption risks through system controls and staff training. [The statistics are provided by the ICAC.]
In 2008, corruption reports received by the ICAC dropped six per cent to 3,377, of which 65 per cent were related to the private sector, 28 per cent concerned government departments, and the remaining seven per cent were against public bodies.
Research on corruption - carried out by the Anti Corruption Resource Centre - shows that police corruption in Hong Kong was frequently associated with 'illegal markets' or 'victimless crimes' such as gambling, prostitution and drugs. Thus, the decision to legalise off-course betting in Hong Kong - a previously rich source of police bribes - may plausibly have contributed to the fall in police corruption. The investigative, preventive and educational activities of the ICAC no doubt also had some impact but was not solely or even largely responsible for reducing police corruption.
Controversies
After the big purges of the 1970s, many thought that the ICAC would take a reduced role in society, but despite the fact that their main job was done their influence remained pervasive. Short of voluminous numbers of dramatic cases many ICAC officers left Hong Kong, others remained to enjoy a less taxing life. However, in 1993 their Deputy Director of Operations Alex Tsui Ka-kit was suddenly sacked by Governor Patten who stated that he had 'lost confidence' in Mr. Tsui - a euphemism that strong evidence of corruption or significant wrongdoing existed. The 'Alex Tsui Affair' caused a huge stir in the mid-1990s as Tsui did not go quietly. Indeed he made counter-allegations of misconduct within the ICAC, one of which was that Director of Operations Jim Buckle had 'squashed' an investigation into allegations of sexual harassment by an officer called Michael Croft (who was later transferred and forced out of the service). Alex Tsui's continued rantings in the media and Legislative Council did little for the image of ICAC.A year later at Christmas 1995 an ICAC assistant director - a well known carouser - was arrested for drinking and driving. Following conviction he mysteriously avoided strong punishment and received only a 'reprimand' from the Commissioner of the ICAC.
Constitutional status of the Commission
Hong Kong Basic Law
The Basic Law of the Hong Kong Special Administrative Region of the People's Republic of China, or simply Hong Kong Basic Law, serves as the constitutional document of the Hong Kong Special Administrative Region of the People's Republic of China...
in 1990, providing for the establishment of a "Commission Against Corruption". This anti-graft agency thus subsists as a constitution
Constitution
A constitution is a set of fundamental principles or established precedents according to which a state or other organization is governed. These rules together make up, i.e. constitute, what the entity is...
ally sanctioned body.
As a passing remark the name of the agency ("Independent Commission against Corruption") has been questioned as unconstitutional, as the Basic Law names it "Commission Against Corruption". However, as the Chinese version of the Basic Law prevails over the English version, this is not considered a misnomer. Another interpretation is that the Basic Law states only that such a commission has to be established without directing how it should be named.
Covert surveillance
In 2005, the evidence collected by the ICAC through covert surveillance in a case involving a publicly listed company was questioned. While the judge ruled that covert surveillance carried out in this case was unconstitutional due to the absence of relevant legal procedures, the judge admitted the evidence as he found that the ICAC had conducted the operations in good faith. The defendants were convicted.To address the lack of legal procedures that govern covert surveillance by law enforcement agencies, as required by the Basic Law, the LegCo passed the Interception of Communication and Surveillance Ordinance (ICSO) in August 2006 to provide for such procedures. All covert surveillance operations of the ICAC are now carried out strictly in accordance with the ICSO which applies to all law enforcement agencies in Hong Kong.
An assistant ICAC investigator was jailed for 9 months on 4 April 2003 for lying in a court trial, to conceal the fact that he had threatened a suspect to co-operate with a probe by the Independent Commission Against Corruption (ICAC).
So far, this is the only case of such a nature in ICAC history.
Organization
Commissioners of the ICACThe ICAC has three divisions: Operations, Community Relations, and Corruption Prevention. The Operations department is the largest by far, has 72 percent of the staff, and is responsible for all the high-profile busts. This largest department considers itself all powerful, and has apparently resisted all attempts to interfere with its investigations. The exercise of its power has allegedly relegated the Commissioner to a figurehead role. The investigation into circulation fraud by Sally Aw
Sally Aw
Sally Aw Sian, OBE. DStJ, JP is a Hong Kong businesswoman and adopted daughter of Chinese entrepreneur Aw Boon Haw.In 1931, Aw Boon Haw and the second of his four wives adopted the five-year-old daughter of a distant relative from Burma, changing the girl's name from She Moi to Sian...
at The Standard
The Standard
The Standard is an English free newspaper of Hong Kong with a daily circulation of 231,018. It was called the Hong Kong Standard and changed to HKiMail during the Internet boom, but it changed back to The Standard in 2001....
has been cited as an example of the embarrassment caused by such non-cooperation with the government hierarchy.
Colonial Regulation 55
Colonial Regulation 55 was an executive provision of the highest order for which the colonial GovernmentColonial Hong Kong
In the 19th century the British, Dutch, French, Indians and Americans saw Imperial China as the world's largest untapped market. In 1840 the British Empire launched their first and one of the most aggressive expeditionary forces to claim the territory that would later be known as Hong Kong.In a few...
was not obliged to give cause. It stipulated that "An officer holds office subject to the pleasure of the Crown
The Crown
The Crown is a corporation sole that in the Commonwealth realms and any provincial or state sub-divisions thereof represents the legal embodiment of governance, whether executive, legislative, or judicial...
, and the pleasure of the Crown that he may no longer hold it may be signified through the Secretary of State
Secretary of State for Foreign and Commonwealth Affairs
The Secretary of State for Foreign and Commonwealth Affairs, commonly referred to as the Foreign Secretary, is a senior member of Her Majesty's Government heading the Foreign and Commonwealth Office and regarded as one of the Great Offices of State...
, in which case no special formalities are required."
As a safeguard for this regulation, action must be taken by the Secretary of State for Foreign and Commonwealth Affairs
Secretary of State for Foreign and Commonwealth Affairs
The Secretary of State for Foreign and Commonwealth Affairs, commonly referred to as the Foreign Secretary, is a senior member of Her Majesty's Government heading the Foreign and Commonwealth Office and regarded as one of the Great Offices of State...
in London after review by the Secretary of the Civil Service and the British Attorney General
Attorney General for England and Wales
Her Majesty's Attorney General for England and Wales, usually known simply as the Attorney General, is one of the Law Officers of the Crown. Along with the subordinate Solicitor General for England and Wales, the Attorney General serves as the chief legal adviser of the Crown and its government in...
. The highest authority would have been the Lord Chancellor
Lord Chancellor
The Lord High Chancellor of Great Britain, or Lord Chancellor, is a senior and important functionary in the government of the United Kingdom. He is the second highest ranking of the Great Officers of State, ranking only after the Lord High Steward. The Lord Chancellor is appointed by the Sovereign...
.
This regulation was invoked approximately 25 times by the colonial Government up to 1978, twice of which was during the tenure of Governor MacLehose.
Henry Litton
Henry Litton
Henry Litton CBE, GBM is a retired judge in Hong Kong.Born into a Eurasian family in Hong Kong, Henry Litton excelled in school during his early years in England and was educated in King's College, Taunton and Merton College, Oxford, where he graduated with honors in jurisprudence.After passing...
, Chairman of the Hong Kong Bar Association
Hong Kong Bar Association
The Hong Kong Bar Association is the professional regulatory body for barristers in Hong Kong, and was founded in 1949. Like other professional bodies, the HKBA has the authority to take disciplinary action to the members who breach the Code of Conduct of the Association...
questioned the use of Regulation 55, when Regulations 56 and 57 (which provides for "dismissal after due enquiry" before a judge) could have been used. He furthermore said " As far as I know, Colonial Regulations apply to only sovereign gazetted officers", and that "no Chinese policeman has ever been given a copy ...before signing on". Most Legislators supported the move as being under "exceptional circumstances" and "necessary".
The Colonial Regulation has been replaced by the Public Service Order after Hong Kong's transfer of sovereignty to China in 1997.
Information technology
ICAC commissioner Dr Timothy Tong Hin-ming mentioned in a report tabled in the Legislative CouncilLegislative Council
A Legislative Council is the name given to the legislatures, or one of the chambers of the legislature of many nations and colonies.A Member of the Legislative Council is commonly referred to as an MLC.- Unicameral legislatures :...
the strategic importance of information technology (IT) in operations as corruption cases have become increasingly complex. The commission has stepped up staff training in financial investigation and computer forensics skills, and enhanced investigative resources especially in regard to corruption in the private sector
Private sector
In economics, the private sector is that part of the economy, sometimes referred to as the citizen sector, which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state...
.
In 2008, the commission organised a series of seminars to enhance the investigators' knowledge on the global and local financial system and its regulatory mechanism.
ICAC's financial investigation section probed into 7,095 financial transactions in 168 cases, involving an aggregated sum of HK$4.4 billion (US$567 million) in 2008. The commission's computer forensics section carried out 502 computer data analysis projects relating to 111 operations in which 368 computers were seized.
ICAC in fiction
There have been several movies about the ICAC, The First Shot in 1993 and I Corrupt All CopsI Corrupt All Cops
-Synopsis:During the time Hong Kong was under British rule, there was a dark age when corruption and bribery were the order of the day. Chinese Chief Inspector Lak together with his gang, Unicorn , Gale and Gold laundered massive sums thereby making Hong Kong an empire of graft...
in 2009 that tell the history of the ICAC from the inception to how it adopted its interrogation methods.