Duo charged for alleged fraudulent scam over asbestos replacement at Aberdeen Tunnel

2002-11-8

A staff of the Highways Department (HyD) and a subcontractor were today (Friday) charged by the ICAC for their alleged involvement in a fraudulent scheme to deceive HyD over the replacement of damaged asbestos wall panels inside the Aberdeen Tunnel.

Chan Wing-wai, 33, Works Supervisor I of HyD, and Tang Tak, 51, proprietor of Tak Lee Company (Tak Lee), will appear in Eastern Magistracy at 9:30 am next Monday (November 11) on one count of conspiracy to defraud HyD and three counts of fraud offences.

Tak Lee was subcontracted to replace damaged asbestos wall panels with Cemboard panels inside the tunnel.

The case arose from complaints, alleging that some HyD staff had corruptly connived at non-compliant works inside the tunnel. ICAC enquiries uncovered the alleged conspiracy and fraud offences.

The duo was arrested in an ICAC operation in June this year.

One of the charges alleges that Chan and Tang had conspired together and with other persons to defraud HyD by falsely representing that:

- the replacement of panels in the Aberdeen Tunnel as specified in the relevant HyD works orders had been satisfactorily completed; and

- additional works orders for urgent replacement of panels in the Aberdeen Tunnel were genuinely required and works had been satisfactorily completed.

The duo was said to have deceived HyD into making payments for such replacement works.

Chan alone faces one count of fraud, alleging him of making false claims for overtime work.

Tang was further charged with two counts of fraud. He was said to have falsely represented to HyD that panels in the North Tube and South Tube of the tunnel, which were required to be replaced under works orders issued by HyD, had been duly replaced with Cemboard panels.

Tang was alleged to have induced HyD to certify completion of and to arrange payment for such works, with intent to defraud.

The alleged offences took place between December 1997 and March 2001.

The defendants have been released on ICAC bail, pending their court appearances on Monday.
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