Response Statement

2004-4-15

In response to press enquiries, an ICAC spokesman today (Thursday) confirmed that the Commission has arrested 11 persons in relation to the suspected illegal excavation of boulders from Tung Chung River, including a chairman of a rural committee alleged t o have accepted advantages to facilitate the scam.

Also arrested in yesterday's operation, code-named " Han River ", were a vice-chairman, a secretary and six members of the rural committee, as well as two operators of an engineering company.

The ICAC earlier received corruption complaints, alleging that a rural committee chairman might have accepted advantages for conniving at the illegal excavation of boulders from Tung Chung River in relation to a construction project at Penny's Bay.

The project, a joint venture by the Government and a private enterprise and supervised by the Civil Engineering Department, involves the construction of an artificial lake.

Another construction company has been subcontracted with the lake edge project, which requires large quantities of boulders.

ICAC inquiries revealed that the arrested engineering company's operators had allegedly undertaken to supply the subcontractor with boulders removed from Tung Chung River, claiming that the boulders were to be obtained legally.

The Government subsequently received a complaint alleging environmental hazards caused by the removal of boulders from the river.

It was also alleged that the operators of the engineering company had produced a letter to the subcontractor, purportedly issued by a rural committee authorizing the engineering company to remove boulders from the river as part of a flood prevention proje ct. The letter was subsequently submitted to the Government.

ICAC investigation revealed that the chairman and secretary of the rural committee might have allegedly provided corrupt assistance in providing the letter, and deceived the Government into believing that the boulders were removed because of flood prevent ion.

The arrestees are still being detained by the ICAC, pending further inquiries.
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