Former government structural engineer guilty of accepting unauthorised loans

2000-4-6

A former Structural Engineer of the Architectural Services Department (ASD), charged by the ICAC with accepting unauthorised loans totalling $590,000 and postponing repayment by issuing dishonoured cheques to his debtors, was found guilty at District Cour t today (Thursday).

Judge Bernard Whaley adjourned the case to May 3, 2000 for sentence, pending community service and probation reports. The defendant was remanded in the custody of the Correctional Services Department.

Chan Yiu-wah, 40, was found guilty on two counts of accepting loans of $340,000 and $250,000 respectively from Au Chiu and Tong Chun-cheung, Sidney in January and February 1998, without the general or special permission of the Chief Executive.

Au and Tong were respectively a construction contractor and a quantity surveyor employed by a subcontractor of ASD.

Chan was also convicted of two counts of evading liability by deception, by falsely representing to Au and Tong that two cheques drawn on his account would be good for repaying the loans.

The court heard that in January 1998, Chan approached Au for a $340,000 loan. Chan told Au that he was awarded a contract in his private capacity and was short of cash to pay workers' wages. Au lent the money to Chan on the following day.

In February 1998, Chan told Tong he was in financial difficulties and solicited a loan of $250,000. Chan offered to pay an interest of $10,000, and gave Tong a post-dated cheque for $260,000.

Chan also issued another post-dated cheque to Au for $200,000 to repay part of the loan.

However, the two cheques were bounced when Tong and Au tried to deposit them to their bank accounts in March 1998 and February 1999.

The court was told that Chan's bank account on which the cheques were drawn was closed on May 8, 1998.

The prosecution was today represented by Senior Government Counsel Stanley Chan, assisted by ICAC officer Edward Cheng.
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