The FRC announced that it has arranged a joint operation codenamed "Sniper" with the Independent Commission Against Corruption in accordance with the memorandum of understanding signed by both parties.
The operation included a search of the office of the auditor of a public interest entity involved in the initial public offering of a listed company, as well as the premises of other related parties.
The FRC conducts searches for suspected misconduct by auditors and registered persons of public interest entities in accordance with the Financial Reporting Council Ordinance.
The ICAC conducted searches under the Prevention of Bribery Ordinance and arrested some persons suspected of corruption offences.
ICAC arrested 9 people including 3 accountants for bribery over one million
The ICAC stated that nine people were arrested in the operation, including three accountants and two auditors from an accounting firm and similar companies.
Two of the accountants successively served as chief financial officers of the construction company.
The five accountants/auditors allegedly accepted bribes of over HK$1 million from the chairman of the construction company in order to prepare a false accountant report for the construction company to apply for listing on the Main Board of the Hong Kong Exchanges and Clearing Limited.
The ICAC suspected that some of the businesses mentioned in the accountant's report did not exist, and the report or concealed some connected transactions.
Macau ICAC initiates a case and intervenes
At the same time, the Independent Commission Against Corruption of Macau also opened a case to investigate possible crimes committed by related persons in Macau, and searched multiple locations in Macau, including the office of the construction company in Macau.
All the arrested persons have been released on bail pending further investigation.
The investigation is still going on and the ICAC should not comment further.
