HyD staff and subcontractor jailed for Aberdeen Tunnel asbestos scam

2003-9-4

A staff of the Highways Department (HyD) and a subcontractor, charged by the ICAC, were today (Thursday) sentenced at District Court for their roles in a fraudulent scheme in relation to the replacement of damaged asbestos wall panels at the Aberdeen Tunn el.

Chan Wing-wai, 34, Works Supervisor I of HyD, received a jail sentence of two years and four months, while Tang Tak, 51, proprietor of Tak Lee Company (Tak Lee), was jailed for two and a half years.

In sentencing, Judge Day said Chan had caused a serious breach of trust, and reprimanded Tang for showing no remorse.

The judge said as a result of the fraud, which lasted three to four years, the health of tunnel users might have been put at risk as damaged asbestos wall panels were not properly replaced.

Chan and Tang were yesterday found guilty of one count of conspiracy to defraud HyD. They were also convicted of three fraud charges.

The case arose from a complaint, alleging that some HyD staff had corruptly connived at non-compliant works in relation to the replacement of asbestos wall panels inside the Aberdeen Tunnel. ICAC enquiries uncovered the conspiracy and fraud offences.

The court heard that Tak Lee was subcontracted to replace damaged asbestos wall panels with asbestos-free Cemboard panels inside the tunnel.

Chan, who was then responsible for supervising the project, and Tang had conspired with other persons to defraud HyD by falsely representing that the replacement of panels as specified in the relevant HyD works orders had been satisfactorily completed, and had deceived HyD into making payments.

The court heard that Tang also falsely represented to HyD that asbestos panels in the North Tube and South Tube of the tunnel had been duly replaced with Cemboard panels as required.

Subsequently, Tang induced HyD to certify completion of such works and arrange for payments.

The above offences took place between December 1997 and December 2000.

The court also heard that Chan had made false claims for overtime allowances totalling about $25,000 between July 1999 and February 2000.

The prosecution was today represented by Senior Government Counsel Winnie Ho, assisted by ICAC officer Simon Cheng.
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