Former KCRC general manager admits taking $2.5m in bribes
2000-6-15
A former General Manager of the Kowloon-Canton Railway Corporation ’ s (KCRC) Property Division admitted at District Court today (Thursday) that he had accepted about $2.5 million in bribes from an architectural firm for awarding term consultancy contracts worth totalling $9.7 million.
Judge Fergal Sweeney adjourned the case to June 29, 2000 for sentence, pending a background report, and remanded the defendant in the custody of the Correctional Services Department.
Cheung King-fung, 44, charged by the ICAC, today pleaded guilty to 14 counts of accepting $2,540,000 in total from Kwan Wing-hong as rewards for awarding term consultancy contracts to Kwan and Associates Architects Limited (Kwan and Associates) between Au gust 1998 and August 1999.
Cheung was further charged with one count each of forging nine service orders and conspiracy to defraud KCRC. The court today ordered these two charges be left on file.
The court heard that Cheung was responsible for recommending term consultants to the director of the KCRC ’ s Property Division for contracts not exceeding $500,000. When Cheung was offered acting appointments as the director, he had the authority to approve such contracts.
Kwan and Associates was one of KCRC ’ s term consultants for architectural services, of which Kwan Wing-hong was the director.
The court was told that on August 1, 1998, Cheung solicited a 35 percent illegal rebate from Kwan for every service order awarded to Kwan and Associates. It was later agreed that the bribes would be reduced to 30 percent of the contract value.
Between August 1998 and August 1999, Cheung solicited a total of $2,540,000 in cash from Kwan on various occasions. Kwan had fully paid the illegal rebates as demanded.
As a result, 23 term consultancy contracts, worth $9,738,706 in total, were awarded to Kwan and Associates during the year.
The court was also told that since the award of contracts valued over $500,000 need to be approved by a steering committee of KCRC, Cheung had instructed Kwan to lower the bidding price of various contracts to below $500,000.
The prosecution was today represented by Christopher Coghlan on a fiat, assisted by ICAC officer Diman Mak.
Judge Fergal Sweeney adjourned the case to June 29, 2000 for sentence, pending a background report, and remanded the defendant in the custody of the Correctional Services Department.
Cheung King-fung, 44, charged by the ICAC, today pleaded guilty to 14 counts of accepting $2,540,000 in total from Kwan Wing-hong as rewards for awarding term consultancy contracts to Kwan and Associates Architects Limited (Kwan and Associates) between Au gust 1998 and August 1999.
Cheung was further charged with one count each of forging nine service orders and conspiracy to defraud KCRC. The court today ordered these two charges be left on file.
The court heard that Cheung was responsible for recommending term consultants to the director of the KCRC ’ s Property Division for contracts not exceeding $500,000. When Cheung was offered acting appointments as the director, he had the authority to approve such contracts.
Kwan and Associates was one of KCRC ’ s term consultants for architectural services, of which Kwan Wing-hong was the director.
The court was told that on August 1, 1998, Cheung solicited a 35 percent illegal rebate from Kwan for every service order awarded to Kwan and Associates. It was later agreed that the bribes would be reduced to 30 percent of the contract value.
Between August 1998 and August 1999, Cheung solicited a total of $2,540,000 in cash from Kwan on various occasions. Kwan had fully paid the illegal rebates as demanded.
As a result, 23 term consultancy contracts, worth $9,738,706 in total, were awarded to Kwan and Associates during the year.
The court was also told that since the award of contracts valued over $500,000 need to be approved by a steering committee of KCRC, Cheung had instructed Kwan to lower the bidding price of various contracts to below $500,000.
The prosecution was today represented by Christopher Coghlan on a fiat, assisted by ICAC officer Diman Mak.