**************************************

    Regarding the verdict of a fraud case involving Radio Television Hong Kong (RTHK) at the District Court today (April 12), the Commerce, Industry and Technology Bureau made the following statement:  

   "An employee of RTHK was convicted at the District Court on March 24 of fraud in relation to the awarding of RTHK work contracts. The employee and the other defendants were given suspended jail sentences. Deputy District Judge, Mr Kevin Browne, mentioned in his verdict that the management of RTHK had turned a blind eye to the malpractices. The Government is very concerned about this criticism.

   Throughout the past few years, the management of RTHK, the Audit Commission, and the Independent Commission Against Corruption have conducted respectively reviews on different operational areas of RTHK, such as procurement and resources management. RTHK has implemented various measures to improve its internal management based on the reviews. To further enhance the effectiveness of these measures, the Commerce, Industry and Technology Bureau will invite the Director of Audit to conduct additional audit studies on the operation of RTHK, particularly in those areas which were not covered by previous audit studies, so as to further improve the management of RTHK.

   The Commerce, Industry and Technology Bureau will keep in view the Audit Commission's studies and monitor the progress of the implementation of improvement measures by RTHK."

Ends/Tuesday, April 12, 2005

NNNN