Ex-company chief and manager convicted of substandard works scam

2001-9-13

Two former employees of a subcontractor were today (Thursday) convicted at District Court in connection with a substandard works scam relating to a Housing Department redevelopment project at Phase 2, Shek Yam Estate, Tsuen Wan.

Man Chai-wah, 49, former general manager of Hung Fung Engineering Limited (Hung Fung), and Cheng Tak-wai, 36, former assistant purchasing manager of Hung Fung, were found guilty of conspiracy to defraud main contractor China State Construction Engineering Corporation (China State) between January 15 and February 10, 1999.

Judge MacKintosh adjourned sentencing until September 28, pending community service order reports on the defendants. Man and Cheng were granted cash bail of $15,000 and $10,000 respectively.

Hung Fung was awarded a contract worth $846,000 by China State to install stainless steel claddings on the external walls of a commercial centre in the project.

The defendants had falsely represented to China State that 2 mm stainless steel claddings had been installed in compliance with the works contract.

In fact, Hung Fung had used 1.5 mm thick claddings for the project.

Hung Fung obtained part of the $846,000 contract payments, based on the false information the defendants submitted to the main contractor.

The prosecution was today represented by Andrew Raffell on a fiat, assisted by ICAC officer Matchy Mak.
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