Two company directors and a former manager were today (Monday) sent to jail by District Court Deputy Judge Colin Mackintosh for a price inflation and kickback scam involving more than $3.3 million over the sale of PVC machines.

Kwan Tak-kwong, 42, former shareholder and Technical Manager of Kingston PVC Compound Limited (Kingston), Yuen Sik-wah, 54 and Lam Kin-man, 42, both directors of Wing Ka Engineering Limited (Wing Ka), were found guilty on a total of six charges of conspir acy to defraud.

Kwan was imprisoned for two and a half years while Yuen and Lam were respectively jailed for two years and 21 months.

The court heard that Kwan was employed by Kingston between March 1994 and June 1998.

In July 1996, Kwan, without disclosing his employment with Kingston, was hired by another plastic company, Wide Loyal Industries Limited (Wide Loyal), as an assistant general manager to set up and manage a PVC material production plant in the Mainland.

Between June 1994 and September 1996, Kwan had, on six occasions, respectively recommended Kingston and Wide Loyal to purchase PVC machines from Wing Ka, operated by Yuen and Lam.

The court heard that quotations supplied to the two plastic companies were inflated by more than 50 percent, and it was agreed that Kwan would be given kickbacks for referring businesses to Wing Ka.

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The court also heard that out of the $8,007,250 worth of purchase orders Wing Ka received from Kingston and Wide Loyal during the period, a total of $3,331,331 was returned to Kwan as kickbacks.

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