Former directors found guilty of Yuen Chau Kok short-piling scam
2002-8-13
Two former company directors involved in substandard piling works at two Home Ownership Scheme housing blocks in Yuen Chau Kok, Shatin, were today (Tuesday) convicted by a jury unanimously at the Court of First Instance.
Chan Kwong-yee, 48 and Tom Yiu Yiu-nam, 45, both former directors of the now defunct Hui Hon Contractors Ltd. (Hui Hon), were found guilty of one count of conspiracy to defraud the Hong Kong Housing Authority (HKHA).
Deputy Judge Anthony To Kwai-fung adjourned sentencing the duo until September 3, 2002, together with another defendant in the same case, Li Wai-hang, former site agent of Hui Hon. Li had earlier pleaded guilty to a similar conspiracy offence.
Chan and Yiu were remanded in the custody of the Correctional Services Department.
The piling contract, worth $63 million, was awarded to Zen Pacific Civil Contractors Limited (Zen Pacific), who subsequently subcontracted the works to Hui Hon.
Chan and Yiu were charged for having conspired with Li 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 bored pile layout plans and the approved method statement under the contract;
- falsely representing that the bored piles were constructed in accordance with the approved plans and statement; and
- causing HKHA to pay for work done otherwise than in accordance with the approved plans and statement.
The court heard that out of 36 piles constructed at the site, only four of them were in compliance with the prescribed layout plans.
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.
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.
Li, 46, is currently serving a three-year-and-three-month jail term for his involvement in a separate piling scam case in relation to a pumping station in Central.
The prosecution was today represented by Peter Callaghan on a fiat, assisted by ICAC officer Arthur Leung.
Chan Kwong-yee, 48 and Tom Yiu Yiu-nam, 45, both former directors of the now defunct Hui Hon Contractors Ltd. (Hui Hon), were found guilty of one count of conspiracy to defraud the Hong Kong Housing Authority (HKHA).
Deputy Judge Anthony To Kwai-fung adjourned sentencing the duo until September 3, 2002, together with another defendant in the same case, Li Wai-hang, former site agent of Hui Hon. Li had earlier pleaded guilty to a similar conspiracy offence.
Chan and Yiu were remanded in the custody of the Correctional Services Department.
The piling contract, worth $63 million, was awarded to Zen Pacific Civil Contractors Limited (Zen Pacific), who subsequently subcontracted the works to Hui Hon.
Chan and Yiu were charged for having conspired with Li 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 bored pile layout plans and the approved method statement under the contract;
- falsely representing that the bored piles were constructed in accordance with the approved plans and statement; and
- causing HKHA to pay for work done otherwise than in accordance with the approved plans and statement.
The court heard that out of 36 piles constructed at the site, only four of them were in compliance with the prescribed layout plans.
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.
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.
Li, 46, is currently serving a three-year-and-three-month jail term for his involvement in a separate piling scam case in relation to a pumping station in Central.
The prosecution was today represented by Peter Callaghan on a fiat, assisted by ICAC officer Arthur Leung.