Employee risks jail time of 112 days if he fails to pay
A former employee of a Hyflux-linked firm was fined $56,000 for accepting bribes, including a $27,000 loan, from the managing director of a construction company.
Lee Yuet Heng, 74, who was a deputy project director at Hydrochem, a subsidiary of water treatment company Hyflux, pleaded guilty in August to two charges of graft. If he fails to pay the fine, Lee will serve 112 days in prison.
According to The Straits Times, the bribes were accepted in 2014 from Li Hongda, then managing director of Zhengda Corp, to advance its business interests with Hydrochem. The two men reached an agreement in mid-2014 that Zhengda would hire Lee as a general manager once his contract at Hydrochem ended.
The court was also told that Zhengda inflated prices for additional work on two 2012 contracts it had with Hydrochem. Lee facilitated the process, instructing Zhengda's contracts manager to liaise with Hydrochem staff on the matter. However, the inflated orders were not submitted for approval.
In addition to the inflated pricing, Li paid for Lee's air ticket to Hong Kong and settled his accommodation costs. On or around September 11, 2014, Li gave Lee a loan exceeding $27,000.
The Straits Times reported that Hyflux's management discovered the inflated contract prices during an internal investigation in 2015, which led to Lee's termination. Lee joined Zhengda the following month.
Li was also dealt with in court, receiving a $38,000 fine. Neither Hyflux nor its subsidiaries suffered financial losses from the inflated prices.
