Duo jailed for bribing HD Chief Building Services Engineer for generator business

2003-3-26

A former company director was today sentenced to two years’ imprisonment for offering $400,000 in bribes to a Chief Building Services Engineer of the Housing Department (HD) in relation to the installation of electrical material at various Housing Authority (HA) building projects, while a co-defendant was earlier jailed for 20 months.

Cheung Kwok-chung, 36, former director of Shun Cheong M&E Limited (Shun Cheong), was found guilty today on two counts of offering an advantage to HD Chief Building Services Engineer Chan Kau-tai on January 18 and February 7, 2001, contrary to Section 4(1) (c) of the Prevention of Bribery Ordinance.

The bribes were for Chan to favour Shun Cheong and other associated companies over the supply and installation of standby diesel generating sets at building project sites of HA.

In sentencing, District Court Deputy Judge Ian Candy said the offences committed by Cheung were serious, and had undermined the business operation between the Government and the private sector.

Co-defendant Wong Chi-leung, 56, former director of Brongham Park Limited (Brongham Park), pleaded guilty last week to one count of offering about $200,000 to Chan for the latter to favour Brongham Park in its business transactions with HA or HD. He was sentenced to 20 months’ imprisonment.

The court heard that both Brongham and Shun Cheong were amongst six suppliers of standby diesel generating sets on the HD approved list.

In early 1999, Wong suggested to Cheung and four other suppliers that they should collude to form a cartel, by which each supplier would take turns to secure HA contracts with pre-fixed bidding prices.

Wong subsequently told them that he had spoken to Chan, who agreed to accept bribes calculated at $20,000 per generating set for maintaining the “order” of the cartel.

It was further agreed by the suppliers that the bribe to Chan would be increased to $30,000 per generating set should there be a need to change the specifications in a particular project, and which might require Chan’s assistance.

The court heard that Cheung, on two occasions on January 18 and February 7, 2001, had passed a total of $400,000 to Wong, who then handed the bribes to Chan.

The court also heard that on November 28, 2000, Wong gave Chan a separate payment of $200,000 in relation to the generating set business between Brongham Park and HD or HA.

Wong suggested to his employer that the bribe money could be disguised as a bonus paid to him in the company’s account.

The prosecution was today represented by John McNamara on a fiat, assisted by ICAC officer Nelson Lau.
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