Offering/Accepting Advantages in relation to Loan Extension

A corporate customer holds a loan at a bank. He runs into cash flow problem and cannot service the loan repayment. The corporate customer offers expensive gifts such as watch and cigars, to a bank manager and asks for extension of the loan repayment due date for a couple of times. Despite the fact that the bank has issued clear guidelines to all staff on the prohibition of acceptance of any advantage by its staff in performing the bank’s duties, the bank manager accepts the gifts, and endorses the extensions of the loan repayment due date when it is within his approving authority or makes favourable recommendations to the bank when it is beyond his authority. The bank grants extensions as recommended.

Offences Committed

The bank manager is an agent of the bank. He accepted advantages (i.e. gifts such as watch and cigars) from the corporate customer for endorsing the extensions of the loan repayment. Without the permission of the bank to accept such advantages, he may contravene Section 9(1) of the Prevention of Bribery Ordinance (Cap. 201) (POBO). The corporate customer may contravene Section 9(2) of the POBO by offering the advantages under such circumstances.

Find Out More


Copy Right by ICACW3C 2.0