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HK jewellery tycoon nabbed on corruption
(China Daily HK Edition)
Updated: 2005-04-24 10:41

Jewellery tycoon Tse Sui-luen and his son, Tommy Tse Tat-fung, have been arrested for an alleged illegal commission scheme and misappropriating listed company funds.


Jewellery tycoon Tse Sui-luen (L) and his son, Tommy Tse Tat-fung [sohu]

They were among 11 persons arrested by the Independent Commission Against Corruption (ICAC) in an operation code-named "Pearl", which started on Tuesday.

Tse Sui-luen, 68, is former chairman of Tse Sui Luen Jewellery (International) Limited (TSL), a listed company he himself founded, and his son Tommy is the incumbent chairman.

Also arrested were a former deputy chairman and three business promotion managers of the company; an assistant manager, a former assistant manager and a former senior manager of a travel agency; and two other civilians.

It was alleged that Tse Sui-luen and the TSL employees were involved in a scheme to offer kickbacks to employees of a number of travel agencies and to help them evade tax.

The illegal commissions, which were allegedly arranged without the prior approval of the travel agencies' management, were rewards for their staff to arrange tour groups to visit the TSL showrooms.

To cover up the suspected illegal practices, the commissions were allegedly routed through three off-shore companies controlled by TSL's senior management and their associates.

According to Travel Industry Council's Code of Conduct for Tourist Guides, a tourist guide must not accept "rebates from a retail shop as an inducement to or a reward for recommending tourists to patronize the latter without first seeking permission from his/her travel agent"; and such practice is in violation of the Prevention of Bribery Ordinance.

ICAC inquiries also revealed that Tommy Tse had allegedly misappropriated company funds totalling over HK$2 million, while other members of the senior management were suspected of having assisted in covering up the misappropriation.

Trading in TSL's stocks was suspended on Thursday, pending the announcement of stock price-sensitive information.



 
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