12 years' jail for directors in Yuen Chau Kok short piling scam
2002-9-3
Two former company directors were each jailed for 12 years by the Court of First Instance today (Tuesday) for their involvement in substandard piling works at two Home Ownership Scheme housing blocks in Yuen Chau Kok, Shatin.
Chan Kwong-yee, 48 and Tom Yiu Yiu-nam, 45, both former directors of the now defunct Hui Hon Contractors Ltd. (Hui Hon), charged by the ICAC, were earlier found guilty of one count of conspiracy to defraud the Hong Kong Housing Authority (HKHA) by a nine- member jury unanimously.
Co-conspirator Li Wai-hang, 46, former site agent of Hui Hon, pleaded guilty to a similar conspiracy offence.
Li is currently serving a 39 months' jail term for a separate piling scam in relation to a pumping station in Central. He was today sentenced to three-and-a-half year's imprisonment for the Yuen Chau Kok case, of which 21 months were to run consecutive t o his previous jail term.
In sentencing, Deputy Judge Anthony To Kwai-fung said lengthy jail sentences were necessary to send a strong and clear message to the community about the dire consequences for those who were criminally liable for substandard construction works.
The judge reprimanded the defendants for putting public safety at risk, adding that the seriousness of the offence committed by the defendants outweighed all mitigation grounds raised.
The judge also stressed that contractors must comply with the approved plans in carrying out their works and there was no excuse for the defendants to be engaged in fraudulent practices in the building works.
The judge also remarked that the short piling works had greatly undermined the public's confidence in public housing.
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 method statement; and
- causing HKHA to pay for work done otherwise than in accordance with the approved plans and method 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.
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), charged by the ICAC, were earlier found guilty of one count of conspiracy to defraud the Hong Kong Housing Authority (HKHA) by a nine- member jury unanimously.
Co-conspirator Li Wai-hang, 46, former site agent of Hui Hon, pleaded guilty to a similar conspiracy offence.
Li is currently serving a 39 months' jail term for a separate piling scam in relation to a pumping station in Central. He was today sentenced to three-and-a-half year's imprisonment for the Yuen Chau Kok case, of which 21 months were to run consecutive t o his previous jail term.
In sentencing, Deputy Judge Anthony To Kwai-fung said lengthy jail sentences were necessary to send a strong and clear message to the community about the dire consequences for those who were criminally liable for substandard construction works.
The judge reprimanded the defendants for putting public safety at risk, adding that the seriousness of the offence committed by the defendants outweighed all mitigation grounds raised.
The judge also stressed that contractors must comply with the approved plans in carrying out their works and there was no excuse for the defendants to be engaged in fraudulent practices in the building works.
The judge also remarked that the short piling works had greatly undermined the public's confidence in public housing.
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 method statement; and
- causing HKHA to pay for work done otherwise than in accordance with the approved plans and method 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.
The prosecution was today represented by Peter Callaghan on a fiat, assisted by ICAC officer Arthur Leung.