GLD Controller admits $4.2m housing loan and allowances fraud
2015-7-27
A Controller of the Government Logistics Department (GLD), who was charged by the ICAC, admitted at the District Court today (Monday) that he had defrauded the Hong Kong Government of a downpayment loan and allowances totalling over $4.2 million under the Home Financing Scheme (HFS).
Leung Chiu-ping, 56, Controller of Land Transport Division of the GLD, pleaded guilty to one count of fraud, contrary to Section 16A(1) of the Theft Ordinance, while the prosecution withdrew the joint charge against his wife Helen Law Pik-hang.
After pleading guilty to the charge, Leung told the court through his counsel that he would repay the Hong Kong Government over $7 million being the overclaimed HFS allowances plus interest accrued.
Deputy Judge Ms Ivy Chui Yee-mei adjourned the case to September 4 this year for sentence, and granted Leung cash bail of $50,000.
The case arose from a corruption complaint referred by the Treasury. Subsequent ICAC enquiries revealed the above offence of fraud.
The court heard that in October 1992, Leung joined the Government Land Transport Agency (GLTA) as a Government Transport Manager, and was an eligible applicant of the HFS. GLTA later merged with two other departments to form the GLD.
In December 1992, Leung applied to the Hong Kong Government for a monthly allowance under the HFS to rent a property in Laguna City, Kwun Tong from November 30, 1992 to November 7, 1994. The property was purchased in the name of Law in August 1991.
As requested by the Treasury to prove that he was paying rent for the flat, Leung submitted to the Treasury in October 1994 a self-certified rent receipt signed by Law purporting to show that Leung was still renting the flat from October 8 to November 7, 1994.
Law in fact sold the flat on April 29, 1994, and hence Leung had since ceased living in the flat. The rent receipt was therefore false.
Had the Treasury known that Leung had moved out and/or that the rent receipt was false, Leung would not have been granted HFS monthly allowances totalling $151,200 for renting the flat from April 29 to November 7, 1994.
The court heard that in March 1995, Leung made an application for a downpayment loan under the HFS for the purchase of a property at Palm Springs, Yuen Long. Leung submitted another application in May 1995 for the HFS monthly allowance to settle the mortgage repayment of the property. One month later, Leung and Law got married.
After both applications were approved, Leung was granted a downpayment loan of .46 million and monthly allowances totalling over $2.6 million for the remainder of his 10-year entitlement from May 1, 1995 to May 22, 2003.
The court heard that Leung should have ceased to receive the HFS monthly allowance in April 1994 when he moved out from the Laguna City property. In view of the maximum six-month break rule of the HFS, his entitlement to make a fresh application for further housing benefits would have ended on October 28, 1994.
In conclusion, Leung had received the HFS monthly allowances in a total amount of over $2.75 million and the downpayment loan of .46 million, to which he was not entitled, the court was told.
The GLD and the Treasury had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by Senior Public Prosecutor Samantha Chiu, assisted by ICAC officer Flora Wong.
Leung Chiu-ping, 56, Controller of Land Transport Division of the GLD, pleaded guilty to one count of fraud, contrary to Section 16A(1) of the Theft Ordinance, while the prosecution withdrew the joint charge against his wife Helen Law Pik-hang.
After pleading guilty to the charge, Leung told the court through his counsel that he would repay the Hong Kong Government over $7 million being the overclaimed HFS allowances plus interest accrued.
Deputy Judge Ms Ivy Chui Yee-mei adjourned the case to September 4 this year for sentence, and granted Leung cash bail of $50,000.
The case arose from a corruption complaint referred by the Treasury. Subsequent ICAC enquiries revealed the above offence of fraud.
The court heard that in October 1992, Leung joined the Government Land Transport Agency (GLTA) as a Government Transport Manager, and was an eligible applicant of the HFS. GLTA later merged with two other departments to form the GLD.
In December 1992, Leung applied to the Hong Kong Government for a monthly allowance under the HFS to rent a property in Laguna City, Kwun Tong from November 30, 1992 to November 7, 1994. The property was purchased in the name of Law in August 1991.
As requested by the Treasury to prove that he was paying rent for the flat, Leung submitted to the Treasury in October 1994 a self-certified rent receipt signed by Law purporting to show that Leung was still renting the flat from October 8 to November 7, 1994.
Law in fact sold the flat on April 29, 1994, and hence Leung had since ceased living in the flat. The rent receipt was therefore false.
Had the Treasury known that Leung had moved out and/or that the rent receipt was false, Leung would not have been granted HFS monthly allowances totalling $151,200 for renting the flat from April 29 to November 7, 1994.
The court heard that in March 1995, Leung made an application for a downpayment loan under the HFS for the purchase of a property at Palm Springs, Yuen Long. Leung submitted another application in May 1995 for the HFS monthly allowance to settle the mortgage repayment of the property. One month later, Leung and Law got married.
After both applications were approved, Leung was granted a downpayment loan of .46 million and monthly allowances totalling over $2.6 million for the remainder of his 10-year entitlement from May 1, 1995 to May 22, 2003.
The court heard that Leung should have ceased to receive the HFS monthly allowance in April 1994 when he moved out from the Laguna City property. In view of the maximum six-month break rule of the HFS, his entitlement to make a fresh application for further housing benefits would have ended on October 28, 1994.
In conclusion, Leung had received the HFS monthly allowances in a total amount of over $2.75 million and the downpayment loan of .46 million, to which he was not entitled, the court was told.
The GLD and the Treasury had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by Senior Public Prosecutor Samantha Chiu, assisted by ICAC officer Flora Wong.