Chairman and ex-member of North District Council sentenced for false claims for rental reimbursements

2006-6-12

The Chairman and a former member of the North District Council (NDC), charged by the ICAC, were today (Monday) sentenced at Fanling Magistracy for making false claims for reimbursements for rental expenses in relation to their ward offices, totalling over $129,000 and $30,000 respectively, from the Government.

Li Kwok-fung, 53, Chairman of both NDC and Fanling District Rural Committee (FDRC), received a jail term of four months, while Tang Kun-nin, 52, a former member of NDC, was sentenced to 240 hours of community service.

Li and Tang earlier each pleaded guilty to one count of fraud.

In sentencing, Magistrate Mr William Ng said an immediate custodial sentence was imposed on Li as the offence he committed was serious and constituted a breach of trust.

The magistrate granted Li cash bail of $2,000, pending his appeal against sentence. Li was also ordered to surrender his travel documents, and not to leave Hong Kong.

The ICAC investigation arose from a corruption complaint. Subsequent inquiries revealed the fraud offences.

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, totalling $129,027, to Li.

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

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

The court also heard that between September 2001 and July 2002, Tang falsely represented to NDC Secretariat that he had incurred rental expenses, totalling $39,000, in relation to his ward office as stated in six rental receipts purportedly issued by FDRC .

The NDC Secretariat was induced to reimburse Tang $30,000 in respect of the six false rental receipts, the court was told.

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