The Chairman of the North District Council (NDC), charged by the ICAC, today (Thursday) admitted that he had made false claims for reimbursements for rental expenses in relation to his ward office, totalling over $129,000, from the Government.

Li Kwok-fung, 53, Chairman of both NDC and Fanling District Rural Committee (FDRC), pleaded guilty to one count of fraud.

Fanling Magistrate Mr William Ng adjourned sentencing, pending the trial of a co-defendant. Li was granted bail of $2,000 in cash.

The ICAC investigation arose from a corruption complaint. Subsequent inquiries revealed the fraudulent scam.

The court heard that when the offence took place between January 2000 and May 2002, Li was the Chairman of FDRC and a Councillor of NDC. He was elected Chairman of NDC in January 2004.

At the time of the offence, Li submitted a rental agreement to NDC Secretariat, purporting that he had rented half of the 1st floor of the FDRC building as his District Councillor ward office at a monthly rental of $5,000.

During the above period, Li submitted a total of 29 rental receipts, falsely representing to NDC Secretariat that he had incurred rental expenses totalling $145,000.

As a result, NDC Secretariat was misled into issuing reimbursements to Li totalling $129,027.

ICAC investigation revealed that FDRC had not leased the premises to Li, nor had it received any rental from him.

The court heard that Li had instructed his assistants to prepare the false rental receipts, which were signed by himself in his capacity as the Chairman of FDRC.

Another defendant in the same case was Tang Kun-nin, 52, a former North District Councillor. Tang faces a separate charge of fraud, and his trial will commence tomorrow.

The prosecution was today represented by Susanna Ku, counsel on fiat, assisted by ICAC officer Arthur Tsui.