A former chairman of a rural committee on Lantao Island, charged by the ICAC, was convicted of embezzling $178,300 in committee funds at North Kowloon Court today (Monday).

Cheung Tim-tak, 62, former chairman of the South Lantao Rural Committee (SLRC), was found guilty of a total of 11 theft charges.

Magistrate Mr Y.C. Tong adjourned the case until November 27 this year for sentence, pending probation and community service order reports. Cheung was remanded in the custody of the Correctional Services Department.

The case originated from a corruption complaint, which alleged that a rural committee chairman had bribed two vice-chairmen for allowing him to steal funds from the committee. ICAC enquiries revealed theft offences.

Cheung was the chairman of the 19th SLRC and an ex-officio member of the New Territories District Board between 1995 and 1999.

The court heard that Cheung had the authority to allocate the funds of SLRC to pay overhead expenses and organise community functions and programmes on the Lantao Island.

The funds were held in a savings account of SLRC with the Hongkong & Shanghai Banking Corporation (HSBC).

Cheung and two other vice chairmen of SLRC were authorised signatories to the savings account.

Withdrawals from the account required any two of the signatories to sign a withdrawal slip and produce the savings passbook to HSBC.

The income of SLRC, one of the 27 rural committees under the Heung Yee Kuk, mainly came from government subsidies and villagers' donations.

Between September 1997 and December 1998, Cheung had on eleven occasions stolen $178,300 in total from the savings account of SLRC for his personal use.

The prosecution was today represented by Newman Wong on a fiat, assisted by ICAC officer Nicholas Chow.