Duo convicted of substandard works scam each ordered to pay $100,000 prosecution costs

2001-9-28

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

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 each ordered to perform 200 hours of community service by District Court Judge MacKintosh.

They were also ordered to pay $100,000 each in prosecution costs.

In sentencing, the judge said he had taken into consideration the defendants' clear records, and that the offences they committed did not amount to safety hazards nor had they obtained any personal gain from the scam.

The defendants were earlier found guilty on one count of conspiracy to defraud main contractor China State Construction Engineering Corporation (China State) between January 15 and February 10, 1999.

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 contract payments, based on the false information the defendants submitted to the main contractor.

The prosecution was today represented by Senior Government Counsel Christal Chan, assisted by ICAC officer Matchy Mak.
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