Former site agent admits role in Yuen Chau Kok piling scam
2001-10-11
A former site agent of a piling subcontractor today (Thursday) admitted at the Court of First Instance that he had conspired with others to construct substandard piling works at two Home Ownership Scheme (HOS) housing blocks in Yuen Chau Kok, Shatin.
Li Wai-hang, 44, formerly employed by Hui Hon Contractors Ltd. (Hui Hon), pleaded guilty to one count of conspiracy to defraud the Hong Kong Housing Authority (HKHA) before Deputy Judge McMahon.
The court today adjourned sentencing Li for his role in the Yuen Chau Kok case, pending the trial of two alleged co-conspirators scheduled for June next year.
Li was accused of conspiring with Chan Kwong-yee, Yiu Yiu-nam, Li Chi-him, Lau Tat-shing and others to defraud HKHA between April and December 1998, by dishonestly:
- constructing the bored piles for the foundation works of Block D and Block E at Shatin Area 14B Phase 2 otherwise than in accordance with the approved layout plans;
- falsely representing that the bored piles were constructed in accordance with the approved plans; and
- causing HKHA to pay for works done otherwise than in accordance with the approved plans.
The piling contract, worth $63 million, was awarded to Zen Pacific Civil Contractors Limited (Zen Pacific), who subsequently subcontracted the works to Hui Hon, now defunct.
The court heard that out of 36 piles constructed at the site, only four of them were in compliance with the prescribed layout plan.
Twenty-one of them were found to be shortened by two to 15 meters, while the remaining 11 rested on soft mud instead of bedrock as prescribed.
It was alleged that in the process of carrying out the piling works, in order to speed up excavation of bored holes, Chan and Yiu, former directors of Hui Hon, had instructed temporary steel casing not to be driven to the bottom of the piles, and a soil s tabilizer be used.
The defendant then ordered Lau, an assistant engineer and Li Chi-him, a foreman, to construct bored piles according to the instructions of Chan and Yiu. He also instructed to have the measuring tapes used for measuring pile lengths cut short.
The defendant admitted that in order to cover up the scam, he had made false entries in the bored pile records, which were submitted to Housing Department (HD), and manipulated the results of integrity tests carried out by HD's site staff.
Based on the reports submitted by the defendant, HKHA subsequently released part of the contract payment, $40 million, to Zen Pacific, who in turn, paid Hui Hon $17 million for the piling subcontract works.
The defendant, earlier convicted in a separate piling scam case in relation to a pumping station in Central, is currently serving a three-year-and-three-month jail term.
The prosecution was today represented by Acting Senior Assistant Director of Public Prosecutions Stanley Chan, assisted by ICAC officer Arthur Leung.
Li Wai-hang, 44, formerly employed by Hui Hon Contractors Ltd. (Hui Hon), pleaded guilty to one count of conspiracy to defraud the Hong Kong Housing Authority (HKHA) before Deputy Judge McMahon.
The court today adjourned sentencing Li for his role in the Yuen Chau Kok case, pending the trial of two alleged co-conspirators scheduled for June next year.
Li was accused of conspiring with Chan Kwong-yee, Yiu Yiu-nam, Li Chi-him, Lau Tat-shing and others to defraud HKHA between April and December 1998, by dishonestly:
- constructing the bored piles for the foundation works of Block D and Block E at Shatin Area 14B Phase 2 otherwise than in accordance with the approved layout plans;
- falsely representing that the bored piles were constructed in accordance with the approved plans; and
- causing HKHA to pay for works done otherwise than in accordance with the approved plans.
The piling contract, worth $63 million, was awarded to Zen Pacific Civil Contractors Limited (Zen Pacific), who subsequently subcontracted the works to Hui Hon, now defunct.
The court heard that out of 36 piles constructed at the site, only four of them were in compliance with the prescribed layout plan.
Twenty-one of them were found to be shortened by two to 15 meters, while the remaining 11 rested on soft mud instead of bedrock as prescribed.
It was alleged that in the process of carrying out the piling works, in order to speed up excavation of bored holes, Chan and Yiu, former directors of Hui Hon, had instructed temporary steel casing not to be driven to the bottom of the piles, and a soil s tabilizer be used.
The defendant then ordered Lau, an assistant engineer and Li Chi-him, a foreman, to construct bored piles according to the instructions of Chan and Yiu. He also instructed to have the measuring tapes used for measuring pile lengths cut short.
The defendant admitted that in order to cover up the scam, he had made false entries in the bored pile records, which were submitted to Housing Department (HD), and manipulated the results of integrity tests carried out by HD's site staff.
Based on the reports submitted by the defendant, HKHA subsequently released part of the contract payment, $40 million, to Zen Pacific, who in turn, paid Hui Hon $17 million for the piling subcontract works.
The defendant, earlier convicted in a separate piling scam case in relation to a pumping station in Central, is currently serving a three-year-and-three-month jail term.
The prosecution was today represented by Acting Senior Assistant Director of Public Prosecutions Stanley Chan, assisted by ICAC officer Arthur Leung.