Forty-one people have been arrested for swindling over $1 million in Government subsidies and financial assistance.

Thirty-nine suspects were arrested for allegedly swindling subsidies under the Non-means Tested Loan Scheme and the Continuing Education Fund. They included a suspected triad member, eight staff of two education centres, 26 applicants of the two funds, and four other civilians who acted as indemnifiers.

Both funds are managed by the Student Financial Assistance Agency under the Education & Manpower Bureau. Under the scheme, an eligible applicant receives a low interest rate loan for financing the entire fee of the course enrolled in. The applicant is required to produce an indemnifier with supporting employment and income proof to ensure repayments to the government.

Meanwhile, the fund offers a ceiling subsidy of $10,000. An applicant has to complete the course successfully with the required attendance rate and pass the relevant examination.

Applicants hired by triad member

The investigation arose from information alleging some employees of two education centres might have accepted bribes for facilitating false claims of the scheme and fund subsidies submitted by a number of course members.

Independent Commission Against Corruption inquiries found these course members and subsidy applicants were allegedly recruited by a suspected triad member, who was believed to be the syndicate mastermind.

The suspected triad allegedly arranged a number of civilians to act as indemnifiers for the applicants, and provided forged employment and income proof for them to present.

It is alleged that staff members of the education centres corruptly assisted in falsifying attendance records and examination results of those applicants.

Investigations have found over $660,000 in subsidies were swindled. After receiving the subsidies, it is believed the applicants shared the payments with the syndicate.

False claims submitted

In a second operation, the proprietor of a training centre and one of its course members were arrested for allegedly swindling financial assistance under the Small & Medium Enterprises Training Fund managed by the Trade & Industry Department.

The Fund provides financial assistance to employers and employees of small and medium enterprises to attend business-related training courses.

The arrestees were alleged to have conspired to submit false claims totalling about $43,000 under the fund with false employment records.