Burst
Written by: Huang Diwen and Chen Haoran
2020-12-18 19:15
Last update date: 2020-12-18 22:15
The police today (18th) arrested 3 women and 2 men, suspected of using a mask company to defraud the government's anti-epidemic fund of 9.12 million yuan between March and November this year.
The five people used four different companies to play the role of mask manufacturing equipment supplier, raw material supplier, mask manufacturer and local distributor of masks. They were suspected of manufacturing false documents, falsely claiming that the cost of masks was 2.28 yuan each, and then applied for government funding. However, the police found that the company had no record of purchasing raw materials.
The government purchased 10 million masks from the mask company, and has paid for the 4 million masks produced in the first two months and 9.12 million yuan in subsidies.
Company directors, 3 women and 2 men, were arrested on suspicion of conspiracy to commit fraud.
The police said that the actual cost price and source of the batch of masks are still under investigation.
The Bureau of Commerce and Economics, which is responsible for approving funding applications, did not respond to media enquiries about where the masks were concerned.
Employers and employees of the same company act as suppliers and distributors
The Chief Inspector of the Wealth Investigation Section of the Police Narcotics Bureau, Deng Kaitong, explained the case and said that he had received a report earlier that a local man had a large number of suspicious transactions in his bank account, so he launched an investigation.
Police investigation revealed that the man and 4 members of the group conspired to commit fraud in the "Local Mask Production Subsidy Scheme".
It is understood that they established a new company in March this year.
The group used four different companies to play the role of mask manufacturing equipment supplier, raw material supplier, mask manufacturer and local distributor of masks, and then produced false documents to supply the government at a price higher than cost.
The group also uses false receipts and delivery notes to create the illusion that masks are provided to local sellers in order to meet government application requirements, thereby obtaining more subsidies.
The police investigation found that the directors of three of the companies were both employers and employees of the same company. The raw material company had no record of purchasing raw materials, and the bank records did not show any transaction records with the mask manufacturing company.
The police also discovered that some of the receipts and delivery notes of local distributors were earlier than the date of establishment of the company and the date of the reported address, and the addresses of some of the receipts were incomplete.
Today (18th), members of the Wealth Investigation Team took an arrest and arrested 3 female and 2 male directors of the mask company for "conspiracy to defraud", aged between 28 and 51.
They are still being detained for investigation.
The police do not rule out that more people will be arrested later.
P: The actual price and source of masks are still under investigation
The police stated that the government purchased 10 million masks from a mask company. The mask company reported that the average price of a mask was 2.28 yuan. The government had paid for the 4 million masks produced in the first two months and the subsidy amount was 9.12 million. The source is still under investigation.
One of the conditions of the government's "Local Mask Production Subsidy Scheme" is that the company must provide the government with 2 million masks per month at cost, and the remaining masks must be sold to local sellers.
According to the HKPC website, the government is currently funding 20 local production lines.
When the Bureau of Commerce and Economic Affairs, which is responsible for approving funding applications, responded to media enquiries, it did not respond to the whereabouts of the masks involved. It only pointed out that the police had taken arrests. It is not convenient to comment on the details of the case at this stage.
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