Prison terms for retired HD staff and subcontractors in housing bribery scam

2000-4-10

Jail sentences were meted out at District Court today (Monday) for a former Housing Department (HD) employee and three others charged for corruption over the maintenance contracts of public housing estates in Western New Territories.

Ho Kwok-ching (58), a HD Clerk of Works before he retired, was jailed for three years, while engineering subcontractors Hsu Shu-sin (50), Li Yung-sun (50) and Fung Yuk-hong (48), were each sentenced to two years' imprisonment.

The defendants were found guilty last Friday of a total of ten offences, including conspiracy to accept advantages and conspiracy to defraud HD between June 1984 and December 1995.

In sentencing, Judge Gerald Muttrie said the offences committed by the defendants were serious, and immediate custodial sentences were necessary.

They had conspired with Leung Chun-ping for Ho to accept monetary advantages for allowing the issue of work orders which inflated the estimated costs of works, and preparing draft final bills for the subcontractors to obtain payment from HD.

The ICAC launched an investigation into this case after receiving allegations that some HD staff and a private quantity surveyor employed by the Hong Kong Government on a consultancy basis had accepted bribes from subcontractors.

The court heard that Ho, while employed by HD, was posted to Western New Territories. He was responsible for issuing work orders of public housing estates to subcontractors and assessing the estimated costs of work.

Hsu, Li, Fung and Leung were partners of various engineering subcontractors.

In June 1984, Leung approached Ho for his assistance to inflate estimates of the work orders subcontracted to Leung's company so as to boost the monthly interim payments and facilitate the company's cash flow.

Leung also requested Ho to prepare inflated draft final bills for claiming payments from HD.

Leung promised Ho a reward equivalent to two per cent of the value of work orders issued, and another payment calculated at one percent of the amount of the draft final bills.

Ho agreed to the plan, and since then, received monetary advantage from Hsu and Leung on a monthly basis.

The court was told that since June 1984, Ho had accepted $1.9 million in total from Hsu and Leung.

A Senior Survey Officer of HD, charged in connection with the same investigation, was earlier jailed for 18 months for accepting bribes from Hsu, Li, Fung, Leung and others for speeding up payment for a renovation project in Tung Tau Estate.

The prosecution was today represented by Peter Callaghan on a fiat, assisted by ICAC officer Andrew Wong.
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