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The Mandatory Provident Fund Schemes Authority (MPFA) today (6 November 2006) successfully prosecuted an employer at Kwun Tong Magistracy for failing to comply with a lawful requirement made by the MPFA in the course of exercising or performing its functions. This is the first prosecution under section 43D(1)(b) of the Mandatory Provident Fund Schemes Ordinance (Cap. 485) (the "Ordinance").
The defendant, Pang Yat Sun trading as United Hong Kong Motor Service Centre, pleaded guilty at the Kwun Tong Magistracy of breaching section 43D(1)(b) of the Ordinance for failing to comply with a lawful requirement made by the MPFA in the course of exercising or performing its functions. The defendant was fined $3,000.
It was revealed that in investigating a default contribution case, MPFA inspectors had repeatedly requested the defendant by telephone and in writing to provide the relevant income records of one of his employees. The requests were ignored by the defendant. In early August this year, the MPFA carried out an on-site inspection on the defendant﷿s business premises, during which the defendant stated that he would send the information required by fax later on. The MPFA issued to the defendant a Notice to Require Provision of Information, which clearly stated that the defendant would be liable to be prosecuted for failing to provide the information within the prescribed time specified in the notice without reasonable excuse.
The MPFA subsequently conducted two more on-site inspections. Similar Notices to Require Provision of Information were issued to the defendant on both occasions. The MPFA requested the defendant for a meeting, but to no avail. Having consulted the Department of Justice, the MPFA decided to prosecute the defendant for the repeated failures to comply with the lawful requirement. The defendant finally provided the required information to MPFA in mid October.
An MPFA spokesperson reminded employers that any person who without reasonable excuse, fails to comply with a lawful requirement made by the MPFA in the course of exercising or performing its functions, for example, to submit to the MPFA an employee﷿s relevant income and contribution records, would be prosecuted by the MPFA and is liable on conviction to a fine of $100,000 and to imprisonment for 12 months on the first occasion and to a fine of $200,000 and to imprisonment for 2 years on each subsequent occasion.
The spokesperson added that if an employer fails to make mandatory contributions to the approved trustee on time, the MPFA is also empowered by the Ordinance to impose a financial penalty of $5,000 or 10 per cent of the amount to be paid whichever is the greater. On the other hand, employees are reminded to check their MPF accounts regularly. Should they discover any default contributions, they are encouraged to report them to the MPFA's hotline on 2918 0102 as early as possible and to act as prosecution witness, so as to protect their MPF benefits and rights.
Meanwhile, two company directors and three employers were fined $47,600 at the Kwun Tong Magistracy today, after being convicted of offences under the Mandatory Provident Fund Schemes Ordinance (Cap. 485) (the 䩕Ordinance蒅).
In the first case, Lai Yung Sang, director of Flourish Corporation Limited (BR no.:31611658), was charged for offences under section 7A(8) and section 44 of the Ordinance. The defendant pleaded guilty to two counts of failing to make MPF contributions for an employee within the prescribed time for the contribution periods between February and March 2005. The defendant was fined $5,000 for the first summons and $3,000 for the other summons, totalling $8,000.
In the second case, Chinchen, John Howard, director of Chynchen Associates Limited (BR no.: 05828403), was charged for offences under section 7A(8) and section 44 of the Ordinance. The defendant pleaded guilty to five counts of failing to make MPF contributions for an employee within the prescribed time for the contribution periods between November 2003 and March 2004. The defendant was fined $5,000 for the first summons and $1,200 each for the other summonses, totalling $9,800.
Meanwhile, Chynchen Associates Limited (BR no.: 05828403), was also charged for an offence under section 7A(8) of the Ordinance. The defendant pleaded guilty to five counts of failing to make MPF contributions for an employee within the prescribed time for the contribution periods between June and October 2003. The defendant was fined $5,000 for the first summons and $1,200 each for the other summonses, totalling $9,800.
For the case of Kwan Lik Engineering (Asia) Limited (BR no.: 14574798), which was charged for an offence under section 7A(8) of the Ordinance, the defendant pleaded guilty to four counts of failing to make MPF contributions within the prescribed time for the contribution periods between July and October 2003. The defendant was fined $5,000 for the first summons and $1,500 each for the remaining summonses, totalling $9,500.
For the case of Wah Tai Farm Company Limited (BR no.: 17122958), which was charged for an offence under section 7A(8) of the Ordinance, the defendant pleaded guilty to four counts of failing to make MPF contributions within the prescribed time for the contribution periods between October 2005 and January 2006. The defendant was fined $6,000 for the first summons and $1,500 each for the remaining summonses, totalling $10,500.
The MPFA today also obtained an order for payment against one employer in the District Court. The District Court today issued a judgment against an employer, namely, Foston Development Limited trading as Lotus Courtyard Restaurant. The defendant was ordered to pay the MPFA the sum of $61,731.53, being mandatory contributions in arrears and surcharges payable to four employees of the defendant.
The amount awarded at the District Court will be reimbursed to the employees﷿ MPF accounts as soon as they are received by the MPFA. The District Court further awarded payment of $930 as cost in respect of the claim.
Ends/Monday, November 6, 2006
Issued at HKT 18:23
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