The Wai Hung Group, listed on the Hong Kong Stock Exchange and with a presence in Macau, is being investigated by the Hong Kong Independent Commission Against Corruption (ICAC) on suspicions of fraud and document forgery extending to Macau.
The investigation was made public by the ICAC and involved a simultaneous operation by the Judiciary Police (PJ) in Macau. The operation nicknamed “Demarcation” resulted in seven arrests in Hong Kong, including the group’s president, as well as several directors, who were not identified.
“The investigation revealed that the chairman of the listed company and other individuals allegedly falsified commercial and accounting records linked to branches in Hong Kong and Macau, while accounts receivable for the company, in excess of 113 million patacas, were reduced”, indicated the ICAC. “Allegedly those involved falsified documents and accounting records to hide the appropriation of more than 9 million Hong Kong dollars in group funds”.
In the statement issued by authorities on Wednesday, the group was not named. However, the targetted group was revealed by several Hong Kong media outlets and now confirmed by the company itself.
According to ICAC information, the leaders of the group chaired by Li Kam Hung allegedly reported “fictitious transactions” and “falsified the accounts”, worth approximately 130 million Hong Kong dollars. The alleged crimes were said to have taken place in Hong Kong and Macau.
In a statement issued by the group on Monday at the Hong Kong Stock Exchange, the group announced a suspension of trading of his shares, and promised more information in the future, without mentioning the investigation. However, in the most recent clarification dispatch, the company addresses the investigation for the first time.
Wu Chou Kit
The Wai Hung Group is a contractor providing fitting-out services and repair and maintenance services in Macau. The Group’s fitting-out services primarily cover refitting works for existing buildings and extend to casinos, retail areas, hotels, restaurants, commercial properties and residential properties.
Rita Santos, the president of the General Assembly of the Macau Public Servants’ Association (ATFPM), and Wu Chou Kit, an appointed legislator and president of the Macau Engineers Association, are identified on the group’s website as independent non-executive directors.
Rita Santos is also identified in the 2020 earnings report as the chairperson of the company’s audit committee, and Wu Chou Kit is also a member of the committee. Ms. Santos issued a statement to Plataforma Macau, in which she clarifies that she herself “has nothing to do with this investigation”.
Rita Santos
The statements by Rita Santos come in the wake of a news report in the Chinese version of Plataforma, which she considered “incomplete”.
In the news article, our newspaper reveals the joint police operation carried out by the authorities of Macau and Hong Kong on the Wai Hung Group company, mentioning solely her position as an independent non-executive director and without mention of an arrest or involvement in any alleged illegalities.
The joint operation by Hong Kong and Macau authorities, codenamed “Demarcation”, was conducted on August 19 and 20 to investigate suspicions of cross-border fraud and misconduct in the company.
In a note sent to Plataforma’s editorial office, Santos states that she is “merely one of the three independent non-executive directors in office” and that she was only made aware of the investigation by the authorities of Macau and Hong Kong, during an “online board meeting’ yesterday.
“I have nothing to do with this investigation,” she clarified.
In its clarification dispatch to the Hong Kong Stock Exchange, the Wai Hing Group says that Santos and Wu Chou Kit – referred by their Mandarin Chinese names San Tao Si and Wu Zu Jie – are “absolutely not involved in the related case and have not been investigated or arrested by any law enforcement agencies”.
“Additionally, the three independent non-executive directors, including Ms. San Tao Si, Mr. Wu Zu Jie, and Mr. Lam Chi Wing, had no prior knowledge of any actions related to the investigation and arrest of the Chairman, Mr. Li, and another executive director, prior to the board meeting held on August 22, 2024.”
The Wai Hung Group then emphasized its “commitment to transparency and good corporate governance”, and stated that it will continue to cooperate fully with the authorities in their ongoing investigations.
