Involvement of bribing KPMG employees to help Hongliang International go public, a septuagenarian middleman is prosecuted by the Hong Kong Independent Commission Against Corruption.

The Independent Commission Against Corruption (ICAC) of Hong Kong today (April 14) filed charges against an intermediary, Chen Qiuyun, accusing her of providing a bribe of HK$400,000 to two managers of the auditor KPMG in 2010 to assist a fabric manufacturer (Hung Leung International) in listing in Hong Kong. In late March 2010, the ICAC received a referral from the Securities and Futures Commission (SFC) of Hong Kong regarding the case. The defendant had already left Hong Kong at that time. She was arrested by the ICAC upon her return to Hong Kong. After seeking legal advice from the Department of Justice, the ICAC decided to prosecute the defendant. Chen Qiuyun, 72 years old, is charged with two counts of offering advantages to agents, in contravention of Section 9(2)(a) of the Prevention of Bribery Ordinance. She has been granted bail, and the case will be heard at the Eastern Magistrates' Courts tomorrow (April 15). The prosecution will later apply to transfer the case to the District Court for trial. It is reported that Hung Leung International Holdings Limited (Hung Leung International) planned to list in Hong Kong and engaged KPMG through the defendant's introduction to provide audit services. A senior manager and an assistant manager of KPMG were responsible for the audit work of Hung Leung's initial public offering. Hung Leung was listed on the Main Board of The Stock Exchange of Hong Kong Limited (SEHK) at the end of December 2009, and was delisted in September 2013. The two charges allege that the defendant provided cash bribes of HK$300,000 and HK$100,000 to the two KPMG senior manager and assistant manager respectively on February 20, 2010, as remuneration for their audit services in relation to Hung Leung's IPO. The KPMG assistant manager refused the bribe and reported the incident to the company. After conducting an internal investigation, KPMG reported the matter to the SFC, which then referred the case to the ICAC. During the ICAC's investigation, KPMG, the SFC, and the SEHK provided full cooperation. The ICAC has been working closely with relevant regulatory bodies, including the SEHK and the SFC, to ensure fair and just listing applications through process monitoring and public education, in order to uphold the integrity of Hong Kong's financial market and solidify its position as a leading international financial center.