Hong Kong's Independent Commission Against Corruption says a McDonald's restaurant executive was getting additional money slipped to him between his all-beef patties, special sauce, lettuce, and cheese.
Lau Si-sing, the managing director of McDonald's Restaurants (Hong Kong) Limited, has been convicted at Hong Kong's District Court of taking about HKD2.5 million in illegal kickbacks from a Thailand-based corn supplier and asking the supplier to lie to investigators. Lau was found guilty of one count of conspiracy for an agent to accept advantages and one of conspiracy to pervert the course of public justice. He was acquitted of a similar bribery offense. Deputy Judge Johnny Chan Jong-herng adjourned the case until May 6, 2009, for sentence, pending a background report. The defendant was remanded in the custody of the Hong Kong Correctional Services Department.
During a trip to Macau in 2005, the defendant first suggested that the Thai supplier pay him rebates equivalent to 10% of the sales amount of corns supplied to McDonald's. According to ICAC's press statement, the supplier agreed as he believed that this was the way to do business with McDonald's. Between December 2005 and April 2007, the Thai supplier remitted about HKD2.5 million to the bank account of the defendant or that of his wife.
According to ICAC, McDonald's confirmed that between June 2005 and March 2007, McDonald's purchased over HKD25 million worth of corns from the food company.
When the duo were arrested by ICAC officers on June 29, 2007, the defendant asked the supplier to falsely represent to law enforcement officers that the illegal rebates given to him were for their joint investment in properties in mainland China, the court was told. Neither the court nor ICAC has stated what penalties the wife of Lau faces for using her bank account in connection with the crime.
Within the area of its website dedicated to corporate social responsibility, McDonald's states, "Given the size, scope and complexity of the McDonald's supply chain, guidance and oversight of issues related to sustainability presents special challenges." ICAC states that McDonald's prohibits its employees from accepting these types of bribes, and ICAC states the management of McDonald's rendered full cooperation during its investigation.
However, in its "McDonald’s Code of Conduct for Suppliers", which was last updated in 2000, according to the version on its website, McDonald's makes no direct reference to its employees taking kickbacks from suppliers. The form, which must be signed by suppliers, discusses conforming to all local laws, so McDonald's might be better served in the future to better enunciate these types of illegal activities.
