Some suppliers offer perks as many top chefs have final say in purchasing decisions
By Tan Dawn Wei, Selina Lum 20 September 2009
In the world of Chinese cuisine, the master chef often holds court, wooed by many - including suppliers of pricey ingredients like shark’s fin and abalone.
But absolute power can corrupt, going by the news last week that at least 20 top chefs were grilled by the Corrupt Practices Investigation Bureau (CPIB) over kickbacks.
They were questioned for allegedly pocketing bribes from a seafood supplier in Bedok.
Those in the food and beverage business told The Sunday Times that such graft becomes tempting if the purchasing department is out of the loop.
‘Chinese chefs have a lot of say because there is a general lack of knowledge about Chinese cuisine,’ said chef Chan Chen Hei, 55, regarded as one of Singapore’s top master chefs in Cantonese cuisine.
A former employee of a five-star hotel’s purchasing department said: ‘The chefs can always say this certain supplier has something another supplier cannot offer, and the purchasing department wouldn’t know any better.’
The recent scandal seems to have claimed some scalps.
No hotel or restaurant has admitted that its chefs were among those hauled up. But three hotels - Four Seasons, The Regent Singapore and Marriott - confirmed that their head chefs were no longer working in their fine dining Chinese restaurants.
It is understood that a chef from Meritus Mandarin hotel was also involved in the CPIB investigations.
The kickbacks allegedly received from the supplier of shark’s fin, abalone and other seafood were said to range from 3 per cent to 10 per cent.
Delicacies like shark’s fin and abalone are priced on grade and origin. A single kilogram of shark’s fin can cost as much as $300.
When a hotel or restaurant does not practise a bidding system to get the best bid, it is often the chef who decides which supplier he wants. Even when there is a bidding system, the chef often has the last say.
Industry players say the practice of suppliers finding favour with chefs is not new.
Chef Ang Song Kang, 44, who runs Canto Kitchen in People’s Park Complex, said it is common for suppliers to give hampers and red packets to chefs and kitchen staff during festive seasons like Chinese New Year.
Others give wine, food and even household items.
Suppliers also ingratiate themselves with those who run the purchasing departments of hotels by wining and dining them.
Mr. Chan added that in his more than 20 years in the business, he has seen instances of chefs pilfering.
He said others may connive to inflate the weight of live seafood. When live seafood is delivered, the usual procedure is to weigh it to make sure that the quantity is the same as what was ordered.
‘This is a chance for the chef and supplier to act in cahoots. For instance, 2.2kg of lobster is ordered but only 2kg is delivered. The hotel is charged for 2.2kg and at the end of the month, the money for the ‘extra’ is pocketed by the chef,’ said Mr. Chan, who headed Pan Pacific hotel’s Hai Tien Lo restaurant.
He now runs the fine dining Chef Chan’s Restaurant in the National Museum of Singapore.
Mr. Roberto Galetti, owner-chef of Garibaldi Group of Restaurants, said suppliers have never tried to get overly friendly with him.
‘They have never taken me out for coffee or a meal,’ said the 39-year-old Italian, who adds that he is constantly bargaining with his suppliers for the best price.
Restaurant chains like Crystal Jade Culinary Concepts and Imperial Treasure Restaurant Group said they do not need to tighten checks as they have processes in place.
At Crystal Jade, which has more than 80 restaurants in Asia, its purchasing department sources products from a few suppliers.
Its head chef and its operations’ senior management will then do quality comparison and selection.
Price negotiation, delivery arrangement and credit terms are all handled by the group’s purchasers.
‘The entire process involves many parties and our purchasing department is familiar with market conditions like prices,’ said Ms. Stella To, its spokesman.
Imperial Treasure said it has a strict policy in which its director, Mr. Alfred Leung, makes all purchasing decisions, including which suppliers to work with.
Tung Lok Group executive chairman Andrew Tjioe said the group has a system that prevents corrupt kitchen practices.
But he conceded that those out to cheat will still be able to find loopholes.
‘But for these people, the truth will one day be revealed and there is no permanent cover-up. That is the risk they will have to bear,’ he said.
Tung Lok’s procurement department, which handles all purchasing requirements, does not deal with a single supplier for similar products.
For high-end goods like abalone and shark’s fin, the group’s executive committee needs to give its approval.
‘If staff are found to be involved in corrupt practices, we will not hesitate to expose them. The industry is small and word gets around quickly,’ Mr. Tjioe said.
2 comments:
Chefs spill beans on shady buying practices
Some suppliers offer perks as many top chefs have final say in purchasing decisions
By Tan Dawn Wei, Selina Lum
20 September 2009
In the world of Chinese cuisine, the master chef often holds court, wooed by many - including suppliers of pricey ingredients like shark’s fin and abalone.
But absolute power can corrupt, going by the news last week that at least 20 top chefs were grilled by the Corrupt Practices Investigation Bureau (CPIB) over kickbacks.
They were questioned for allegedly pocketing bribes from a seafood supplier in Bedok.
Those in the food and beverage business told The Sunday Times that such graft becomes tempting if the purchasing department is out of the loop.
‘Chinese chefs have a lot of say because there is a general lack of knowledge about Chinese cuisine,’ said chef Chan Chen Hei, 55, regarded as one of Singapore’s top master chefs in Cantonese cuisine.
A former employee of a five-star hotel’s purchasing department said: ‘The chefs can always say this certain supplier has something another supplier cannot offer, and the purchasing department wouldn’t know any better.’
The recent scandal seems to have claimed some scalps.
No hotel or restaurant has admitted that its chefs were among those hauled up. But three hotels - Four Seasons, The Regent Singapore and Marriott - confirmed that their head chefs were no longer working in their fine dining Chinese restaurants.
It is understood that a chef from Meritus Mandarin hotel was also involved in the CPIB investigations.
The kickbacks allegedly received from the supplier of shark’s fin, abalone and other seafood were said to range from 3 per cent to 10 per cent.
Delicacies like shark’s fin and abalone are priced on grade and origin. A single kilogram of shark’s fin can cost as much as $300.
When a hotel or restaurant does not practise a bidding system to get the best bid, it is often the chef who decides which supplier he wants. Even when there is a bidding system, the chef often has the last say.
Industry players say the practice of suppliers finding favour with chefs is not new.
Chef Ang Song Kang, 44, who runs Canto Kitchen in People’s Park Complex, said it is common for suppliers to give hampers and red packets to chefs and kitchen staff during festive seasons like Chinese New Year.
Others give wine, food and even household items.
Suppliers also ingratiate themselves with those who run the purchasing departments of hotels by wining and dining them.
Mr. Chan added that in his more than 20 years in the business, he has seen instances of chefs pilfering.
He said others may connive to inflate the weight of live seafood. When live seafood is delivered, the usual procedure is to weigh it to make sure that the quantity is the same as what was ordered.
‘This is a chance for the chef and supplier to act in cahoots. For instance, 2.2kg of lobster is ordered but only 2kg is delivered. The hotel is charged for 2.2kg and at the end of the month, the money for the ‘extra’ is pocketed by the chef,’ said Mr. Chan, who headed Pan Pacific hotel’s Hai Tien Lo restaurant.
He now runs the fine dining Chef Chan’s Restaurant in the National Museum of Singapore.
Mr. Roberto Galetti, owner-chef of Garibaldi Group of Restaurants, said suppliers have never tried to get overly friendly with him.
‘They have never taken me out for coffee or a meal,’ said the 39-year-old Italian, who adds that he is constantly bargaining with his suppliers for the best price.
Restaurant chains like Crystal Jade Culinary Concepts and Imperial Treasure Restaurant Group said they do not need to tighten checks as they have processes in place.
At Crystal Jade, which has more than 80 restaurants in Asia, its purchasing department sources products from a few suppliers.
Its head chef and its operations’ senior management will then do quality comparison and selection.
Price negotiation, delivery arrangement and credit terms are all handled by the group’s purchasers.
‘The entire process involves many parties and our purchasing department is familiar with market conditions like prices,’ said Ms. Stella To, its spokesman.
Imperial Treasure said it has a strict policy in which its director, Mr. Alfred Leung, makes all purchasing decisions, including which suppliers to work with.
Tung Lok Group executive chairman Andrew Tjioe said the group has a system that prevents corrupt kitchen practices.
But he conceded that those out to cheat will still be able to find loopholes.
‘But for these people, the truth will one day be revealed and there is no permanent cover-up. That is the risk they will have to bear,’ he said.
Tung Lok’s procurement department, which handles all purchasing requirements, does not deal with a single supplier for similar products.
For high-end goods like abalone and shark’s fin, the group’s executive committee needs to give its approval.
‘If staff are found to be involved in corrupt practices, we will not hesitate to expose them. The industry is small and word gets around quickly,’ Mr. Tjioe said.
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