ICAC corruption investigation reveals fraudulent scam over asbestos replacement
2002-6-10
The ICAC has arrested 12 persons, including two Works Supervisors I of the Highways Department (HyD), for alleged involvement in a fraudulent scheme over the replacement of damaged asbestos wall panels inside the Aberdeen Tunnel.
Also arrested in the operation which commenced last Friday (June 7, 2002) were a director and a contract manager of a construction company; a director, a shareholder and two site foremen of a subcontractor; a proprietor of an engineering company; a direct or and a supervisor of an asbestos disposal company; and a casual worker.
The HyD has appointed a construction company as Term Contractor in 1999 for replacing damaged asbestos wall panels with "Cemboard" panels inside the Aberdeen Tunnel.
The Term Contractor subcontracted the project to a second company, which further subcontracted the project to an engineering company.
The ICAC earlier received corruption complaints alleging HyD staff of allowing non-compliant works.
Investigations revealed that instead of replacing the damaged asbestos panels, the engineering company had allegedly repainted them to pretend that they were "Cemboard" panels being reinstalled.
A Works Supervisor of HyD had allegedly certified the satisfactory completion of these works.
Investigations also revealed that the Environmental Protection Department (EPD) recently demanded the Term Contractor to produce records regarding the disposal of asbestos panels from Aberdeen Tunnel.
Investigations further revealed that HyD had held up an interim payment of about $2.5 million due to be paid to the Term Contractor as the latter failed to produce the disposal records.
In order to cover up the matter, the subcontractor and the engineering company had forged documents to deceive EPD over the disposal of asbestos panels removed from the tunnel.
They had allegedly arranged for a quantity of "Gypsum" boards to disguise as the dismantled asbestos panels.
Both HyD and EPD management rendered full assistance to the ICAC during the investigation.
The arrestees have been released on ICAC bail. ICAC's inquiry into the corruption allegation is continuing.
Also arrested in the operation which commenced last Friday (June 7, 2002) were a director and a contract manager of a construction company; a director, a shareholder and two site foremen of a subcontractor; a proprietor of an engineering company; a direct or and a supervisor of an asbestos disposal company; and a casual worker.
The HyD has appointed a construction company as Term Contractor in 1999 for replacing damaged asbestos wall panels with "Cemboard" panels inside the Aberdeen Tunnel.
The Term Contractor subcontracted the project to a second company, which further subcontracted the project to an engineering company.
The ICAC earlier received corruption complaints alleging HyD staff of allowing non-compliant works.
Investigations revealed that instead of replacing the damaged asbestos panels, the engineering company had allegedly repainted them to pretend that they were "Cemboard" panels being reinstalled.
A Works Supervisor of HyD had allegedly certified the satisfactory completion of these works.
Investigations also revealed that the Environmental Protection Department (EPD) recently demanded the Term Contractor to produce records regarding the disposal of asbestos panels from Aberdeen Tunnel.
Investigations further revealed that HyD had held up an interim payment of about $2.5 million due to be paid to the Term Contractor as the latter failed to produce the disposal records.
In order to cover up the matter, the subcontractor and the engineering company had forged documents to deceive EPD over the disposal of asbestos panels removed from the tunnel.
They had allegedly arranged for a quantity of "Gypsum" boards to disguise as the dismantled asbestos panels.
Both HyD and EPD management rendered full assistance to the ICAC during the investigation.
The arrestees have been released on ICAC bail. ICAC's inquiry into the corruption allegation is continuing.