Don on the run for fraud nabbed in Poland

A former associate professor at Hong Kong University of Science and Technology, Yeung Lam-lung, has been arrested in Poland following a request by the Independent Commission Against Corruption.

Yeung, 59, is wanted for allegedly conspiring with two others to hide his financial interests in two suppliers involved in procurements involving a total value of approximately HK$4 million.

Yeung is facing a total of 17 charges: three counts of conspiracy to defraud and 14 counts of fraud.

The ICAC was informed by Interpol late last month that Yeung had been detained at an international airport in Poland.

"At the ICAC's request, the Department of Justice made an application to Poland for the provisional arrest of Yeung Lam-lung pursuant to the United Nations Convention against Corruption. A formal request for his surrender is being made and will be made," it said.

According to the ICAC, the chemistry lecturer conducted 17 tendering and procurement exercises for HKUST and its subsidiary between September 2011 and February 2019. These exercises involved the purchase of laboratory equipment and testing services from Chun Fo (Asia) Pharmaceutical and PIT, in which Yeung had a direct or an indirect financial interest.

Both Yeung and the suppliers were required to declare any conflicts of interest under the university's regulations.

However, Yeung allegedly conspired with directors at the two suppliers, Yeung Siu-on and Au Yeung Siu-fung, to defraud the university by concealing his interests in the companies. As a result, HKUST engaged the two suppliers in three of the 17 procurements.

Yeung is also accused of concealing his interest in the remaining 14 procurement exercises.

Yeung had already fled Hong Kong when the two directors were charged in September 2022, leading to a warrant for his arrest being issued. He was placed on Interpol's Red Notice in August 2023.

Yeung Siu-on was sentenced to 28 months in prison by the district court in October on 11 counts of conspiracy to defraud and fraud.

Au Yeung is awaiting a verdict on three counts of conspiracy to defraud and fraud on December 19.

The ICAC said HKUST provided full cooperation during the investigation.

Although the university did not comment on the specific case, it said that it has a zero-tolerance policy toward corruption and fraud activities.

"The university strictly enforces the requirement of declaring interests in its procurement procedures, obligating all departments, individuals involved in procurement and approval matters, university suppliers, and employees to declare any conflicts of interest," it said.