Duo charged by ICAC with conspiracy to defraud Lands Department over Yuen Long small house estate development project
2022-3-16
Following enforcement actions taken by the ICAC earlier against suspected corruption and fraud in relation to a small house estate development project in Yuen Long, the Commission this morning (March 16) charged the operator of a small house developer and a village representative in Yuen Long for allegedly conspiring with others to deceive the Lands Department into granting various building licenses for the project in a span of 14 years.
Edward Wong Kwong-wing, 72, operator of Wing Smart Construction Limited (Wing Smart), and Ching Chan-ming, 65, indigenous inhabitant representative of Shui Tsiu San Tsuen, jointly face one count of conspiracy to defraud, contrary to the Common Law. They will be brought to the Eastern Magistrates’ Courts today for mention.
The investigation arose from corruption complaints filed with the ICAC. Wong and Ching were charged at this stage after seeking legal advice from the Department of Justice. As the relevant corruption investigation is continuing, the ICAC does not rule out further law enforcement actions.
Shui Tsiu San Tsuen is a village in Yuen Long. Under the New Territories Small House Policy (“the Policy”), every male indigenous inhabitant of the village aged 18 or above may exercise his “Ding Right” once and apply to the Lands Department to build a small house at the village for his own occupation. “Ding Right” is not transferrable.
ICAC enquiries revealed that Ching, an indigenous inhabitant representative of Shui Tsiu San Tsuen, started the development of a small house estate project in Shui Tsiu San Tsuen by purchasing “Ding Rights” from indigenous inhabitants in Yuen Long in around 1996. Later in about March 2005, Wing Smart, controlled by Wong, entered into an agreement with Ching and appointed him as its trustee to jointly develop the small house project. Ching then continued to purchase more “Ding Rights” from indigenous inhabitants and arranged for them to apply for building licences to build small houses in Shui Tsiu San Tsuen.
The charge alleges that between May 2005 and May 2019, Wong and Ching conspired together and with other persons to defraud the Lands Department by making false representations to induce the Director of Lands and his officers to act contrary to their public duty, namely to grant building licences to applicants who applied for building licences to build small houses under the Policy.
They had allegedly falsely represented that each of the above applicants was the sole legal and registered owner of the respective lot of land located at Shui Tsiu San Tsuen, in respect of which they were applying for building licences.
It is also alleged that they had falsely represented that the applicants had never entered into any agreement or arrangements with any person(s) to transfer or otherwise deal with their respective lots of land or any interest therein; and the applicants had never made and had no intention of making any private arrangements for their rights under the Policy to be sold to other individual or a developer.
ICAC investigation revealed that during the above period, a number of small houses were built in Shui Tsiu San Tsuen and sold to members of the public at the market price ranging from $9 to $13 million each under the name of a private estate. As a result, Wing Smart received over $1,000 million for the sale of 115 small houses in the private estate.
The Lands Department has offered full assistance to the ICAC during its investigation.
Edward Wong Kwong-wing, 72, operator of Wing Smart Construction Limited (Wing Smart), and Ching Chan-ming, 65, indigenous inhabitant representative of Shui Tsiu San Tsuen, jointly face one count of conspiracy to defraud, contrary to the Common Law. They will be brought to the Eastern Magistrates’ Courts today for mention.
The investigation arose from corruption complaints filed with the ICAC. Wong and Ching were charged at this stage after seeking legal advice from the Department of Justice. As the relevant corruption investigation is continuing, the ICAC does not rule out further law enforcement actions.
Shui Tsiu San Tsuen is a village in Yuen Long. Under the New Territories Small House Policy (“the Policy”), every male indigenous inhabitant of the village aged 18 or above may exercise his “Ding Right” once and apply to the Lands Department to build a small house at the village for his own occupation. “Ding Right” is not transferrable.
ICAC enquiries revealed that Ching, an indigenous inhabitant representative of Shui Tsiu San Tsuen, started the development of a small house estate project in Shui Tsiu San Tsuen by purchasing “Ding Rights” from indigenous inhabitants in Yuen Long in around 1996. Later in about March 2005, Wing Smart, controlled by Wong, entered into an agreement with Ching and appointed him as its trustee to jointly develop the small house project. Ching then continued to purchase more “Ding Rights” from indigenous inhabitants and arranged for them to apply for building licences to build small houses in Shui Tsiu San Tsuen.
The charge alleges that between May 2005 and May 2019, Wong and Ching conspired together and with other persons to defraud the Lands Department by making false representations to induce the Director of Lands and his officers to act contrary to their public duty, namely to grant building licences to applicants who applied for building licences to build small houses under the Policy.
They had allegedly falsely represented that each of the above applicants was the sole legal and registered owner of the respective lot of land located at Shui Tsiu San Tsuen, in respect of which they were applying for building licences.
It is also alleged that they had falsely represented that the applicants had never entered into any agreement or arrangements with any person(s) to transfer or otherwise deal with their respective lots of land or any interest therein; and the applicants had never made and had no intention of making any private arrangements for their rights under the Policy to be sold to other individual or a developer.
ICAC investigation revealed that during the above period, a number of small houses were built in Shui Tsiu San Tsuen and sold to members of the public at the market price ranging from $9 to $13 million each under the name of a private estate. As a result, Wing Smart received over $1,000 million for the sale of 115 small houses in the private estate.
The Lands Department has offered full assistance to the ICAC during its investigation.