Chief Customs Officer of C&E and mother charged by ICAC over housing allowance fraud
2022-9-23
The ICAC today (September 23) charged a Chief Customs Officer of the Customs and Excise Department (C&E) and his mother for allegedly defrauding the Government of housing allowance totalling over $160,000 by making false representations about the compliance of the relevant live-in requirement.
The ICAC investigation arose from a corruption complaint referred by the Treasury. Upon completion of the investigation, legal advice was sought from the Department of Justice, which advised charging the Chief Customs Officer and his mother.
Pang Tsz-hong, 45, Chief Customs Officer of the C&E, and his mother Tang Yuk-fong, 68, retired, jointly face one count of conspiracy to defraud, contrary to Common Law. Pang alone further faces one count of fraud, contrary to Section 16A of the Theft Ordinance.
The defendants were released on ICAC bail, pending their appearance in the Tuen Mun Magistrates’ Courts next Tuesday (September 27) for plea.
The alleged offences took place between January 2017 and March 2021. Pang was initially a Senior Customs Officer and was promoted to Chief Customs Officer in February 2019. In January 2017, he submitted an application to the Treasury for housing allowance under the Home Purchase Scheme (HPS) in relation to a property in Yuen Long co-owned by him and his mother, Tang.
Under the HPS, an eligible civil servant would be granted a monthly allowance to repay the mortgage loan of a residential property for a maximum of 120 months. In accordance with the relevant rules and guidelines, an applicant was required to live in the property, while letting and subletting of the property was prohibited.
Pang’s application was subsequently approved by the Treasury and he received a monthly allowance of about $3,900.
One of the charges alleges that Pang falsely represented to the Treasury that he had been residing at the above Yuen Long property, with intent to defraud, induced the Treasury to approve his HPS application and granted him allowance totalling over $160,000.
Another charge alleges that Pang and Tang conspired together to defraud the Treasury by falsely representing that Pang had been residing at the above property since June 2017; causing the Treasury to accept Pang had complied with the live-in requirement under the HPS; and inducing the Treasury to continue to grant allowance to Pang.
ICAC investigation revealed that Tang had rented out the above property to different tenants between August 2016 and February 2021. Tang had also requested a tenant to change the registered user of water and electricity accounts in respect of the property to Pang in light of an investigation conducted by the Treasury.
The C&E and the Treasury have rendered full assistance to the ICAC during its investigation into the case.
An ICAC spokesperson reminds civil servants to uphold integrity and observe the relevant government regulations. Any intended flouting of the regulations would bring disrepute to the civil service, and the civil servants concerned would be subject to disciplinary and legal actions.
The ICAC investigation arose from a corruption complaint referred by the Treasury. Upon completion of the investigation, legal advice was sought from the Department of Justice, which advised charging the Chief Customs Officer and his mother.
Pang Tsz-hong, 45, Chief Customs Officer of the C&E, and his mother Tang Yuk-fong, 68, retired, jointly face one count of conspiracy to defraud, contrary to Common Law. Pang alone further faces one count of fraud, contrary to Section 16A of the Theft Ordinance.
The defendants were released on ICAC bail, pending their appearance in the Tuen Mun Magistrates’ Courts next Tuesday (September 27) for plea.
The alleged offences took place between January 2017 and March 2021. Pang was initially a Senior Customs Officer and was promoted to Chief Customs Officer in February 2019. In January 2017, he submitted an application to the Treasury for housing allowance under the Home Purchase Scheme (HPS) in relation to a property in Yuen Long co-owned by him and his mother, Tang.
Under the HPS, an eligible civil servant would be granted a monthly allowance to repay the mortgage loan of a residential property for a maximum of 120 months. In accordance with the relevant rules and guidelines, an applicant was required to live in the property, while letting and subletting of the property was prohibited.
Pang’s application was subsequently approved by the Treasury and he received a monthly allowance of about $3,900.
One of the charges alleges that Pang falsely represented to the Treasury that he had been residing at the above Yuen Long property, with intent to defraud, induced the Treasury to approve his HPS application and granted him allowance totalling over $160,000.
Another charge alleges that Pang and Tang conspired together to defraud the Treasury by falsely representing that Pang had been residing at the above property since June 2017; causing the Treasury to accept Pang had complied with the live-in requirement under the HPS; and inducing the Treasury to continue to grant allowance to Pang.
ICAC investigation revealed that Tang had rented out the above property to different tenants between August 2016 and February 2021. Tang had also requested a tenant to change the registered user of water and electricity accounts in respect of the property to Pang in light of an investigation conducted by the Treasury.
The C&E and the Treasury have rendered full assistance to the ICAC during its investigation into the case.
An ICAC spokesperson reminds civil servants to uphold integrity and observe the relevant government regulations. Any intended flouting of the regulations would bring disrepute to the civil service, and the civil servants concerned would be subject to disciplinary and legal actions.