On the application of the ICAC, the Eastern Magistracy has issued warrants for the arrest of two persons for their alleged roles in defrauding the Hong Kong Housing Authority (HA) by circumventing the tendering process for the supply of metallic gatesets to HA's housing projects.

Lam Man-hung, 54, director of Gammon Iron Gate Company Limited (Gammon Iron Gate), and Billy Tsoi Kai-chung, 50, director of Outstanding Engineering Company Limited (Outstanding Engineering), were among eight persons earlier arrested by the ICAC during a corruption inquiry.

Gammon Iron Gate and Outstanding Engineering were suppliers of metallic gatesets to HA's housing projects.

ICAC inquiries alleged that Lam and Tsoi had conspired together and with other persons to defraud HA between April 2, 1997 and September 13, 2000 by dishonestly:

- submitting non-genuine quotations for the supply of gatesets to be incorporated into tenders to HA for the purpose of circumventing and defeating HA's tendering system;

- deceiving HA into accepting the non-genuine quotations in such tenders; and

- distributing equally amongst the gatesets suppliers the profits earned as a result of HA accepting the tenders with the non-genuine quotations.

Anyone who has information on the whereabouts of Lam and Tsoi or any other information which may lead to their arrest is urged to contact the ICAC on its 24-hour hotline 2526 6366. Information received will be treated in the strictest confidence.

Meanwhile, six other metallic gateset suppliers charged in connection with the alleged fraud today appeared at Eastern Magistracy on a similar conspiracy charge.

William Chan Cheu-hung, Wong Chun-hay, Yu Chuen-wing, Hui Shun-tang, Law Chung-for and Sit Kam-tai had their case adjourned until December 22, 2003 for mention.