Trio jailed for extorting wages from cleaners
2006-3-25
Two former executives of a cleaning company and a sub-contractor, charged by the ICAC, were today (Saturday) each sentenced to two years' imprisonment at the District Court for extorting $1.9 million in wages from their workers.
Au Wai-hung, 46, a former general manager of Polyking Services Limited (Polyking), earlier pleaded guilty to one count of conspiracy to defraud.
Leung Chi-keung, 38, a former accounts manager of Polyking, and So Wai-hung, 47, a cleaning subcontractor of Polyking, were found guilty on one joint charge of conspiracy to defraud. Leung was further convicted of a similar offence of conspiracy to defrau d.
In sentencing, Deputy Judge Anthony Kwok said the defendants had premeditated a plan to extort wages from cleaning workers with blatantly dishonest means.
The judge added that the cleaning workers suffered losses in wages, and that custodial sentences were imposed to serve as a deterrence.
The case arose from a corruption complaint. ICAC inquiries subsequently revealed the fraudulent scam.
The court heard that on July 1, 2002, Polyking was awarded an Leisure and Cultural Services Department (LCSD) contract, worth $9.42 million, for the provision of cleaning services to the Hong Kong Central Library for a period of 24 months.
The contract stipulated that Polyking had to pay each day-shift worker a monthly wage of not less than $5,166, while each night-shift worker should receive not less than $3,228.
Since the commencement of the contract, Au instructed a contract manager of Polyking to recruit day-shift workers at a monthly wage of $4,500, and night-shift staff at $2,500.
Au and Leung also falsely represented to LCSD that Polyking had paid its cleaning workers no less than the stipulated wages.
As a result of the false representation, the LCSD was induced to make monthly payments to Polyking pursuant to the contract. Out of the contract payments, $1 million was wages pocketed by Polyking as a result of the extortionary means.
The court also heard that on November 1, 2003, Polyking secured another $17.8 million contract from the LCSD for providing the Kowloon Park with cleaning services for a period of 36 months.
At the outset, Polyking subcontracted the cleaning work of the swimming pool to So, who took up the entire Kowloon Park cleaning services from April 2004 onwards.
According to the contract, the cleaning workers should be paid a monthly wage of $5,190.
Instead, Au instructed So and the contract manager of Polyking to recruit cleaning workers at a monthly wage of $4,300.
Au, Leung and So conspired to submit to LCSD monthly debit notes, statements and certificates, falsely affirming that the cleaning workers had been paid not less than the salary amounts as stipulated under the contract.
Believing that the supporting documentation provided by Polyking was true and genuine, LCSD was misled into paying the cleaning company monthly payments pursuant to the contract. Of these, $900,000 was workers' wages pocketed by Polyking and So.
The prosecution was today represented by Christopher Coghlan, counsel on fiat, assisted by ICAC officer Patrick Leung.
Au Wai-hung, 46, a former general manager of Polyking Services Limited (Polyking), earlier pleaded guilty to one count of conspiracy to defraud.
Leung Chi-keung, 38, a former accounts manager of Polyking, and So Wai-hung, 47, a cleaning subcontractor of Polyking, were found guilty on one joint charge of conspiracy to defraud. Leung was further convicted of a similar offence of conspiracy to defrau d.
In sentencing, Deputy Judge Anthony Kwok said the defendants had premeditated a plan to extort wages from cleaning workers with blatantly dishonest means.
The judge added that the cleaning workers suffered losses in wages, and that custodial sentences were imposed to serve as a deterrence.
The case arose from a corruption complaint. ICAC inquiries subsequently revealed the fraudulent scam.
The court heard that on July 1, 2002, Polyking was awarded an Leisure and Cultural Services Department (LCSD) contract, worth $9.42 million, for the provision of cleaning services to the Hong Kong Central Library for a period of 24 months.
The contract stipulated that Polyking had to pay each day-shift worker a monthly wage of not less than $5,166, while each night-shift worker should receive not less than $3,228.
Since the commencement of the contract, Au instructed a contract manager of Polyking to recruit day-shift workers at a monthly wage of $4,500, and night-shift staff at $2,500.
Au and Leung also falsely represented to LCSD that Polyking had paid its cleaning workers no less than the stipulated wages.
As a result of the false representation, the LCSD was induced to make monthly payments to Polyking pursuant to the contract. Out of the contract payments, $1 million was wages pocketed by Polyking as a result of the extortionary means.
The court also heard that on November 1, 2003, Polyking secured another $17.8 million contract from the LCSD for providing the Kowloon Park with cleaning services for a period of 36 months.
At the outset, Polyking subcontracted the cleaning work of the swimming pool to So, who took up the entire Kowloon Park cleaning services from April 2004 onwards.
According to the contract, the cleaning workers should be paid a monthly wage of $5,190.
Instead, Au instructed So and the contract manager of Polyking to recruit cleaning workers at a monthly wage of $4,300.
Au, Leung and So conspired to submit to LCSD monthly debit notes, statements and certificates, falsely affirming that the cleaning workers had been paid not less than the salary amounts as stipulated under the contract.
Believing that the supporting documentation provided by Polyking was true and genuine, LCSD was misled into paying the cleaning company monthly payments pursuant to the contract. Of these, $900,000 was workers' wages pocketed by Polyking and So.
The prosecution was today represented by Christopher Coghlan, counsel on fiat, assisted by ICAC officer Patrick Leung.