15 months for former staff of FEHD pest control contractor over wage fraud
2006-6-15
Two former staff of a pest control company contracted by the Food and Environmental Hygiene Department (FEHD), charged by the ICAC, were today (Thursday) each jailed for 15 months at District Court for defrauding the Government over the wages paid to work ers.
Lee Bun-keung, 42, former contract manager of Green Harbour Environmental Services Limited (Green Harbour); and Chau Ping-kuen, 44, former foremen of Green Harbour, were earlier found guilty on one joint charge of conspiracy to defraud.
The ICAC investigation arose from a corruption complaint. Subsequent enquiries revealed a fraudulent scheme to exploit workers of the FEHD contractor.
FEHD had rendered full assistance to the ICAC during its investigation.
The court heard that in June 2004, Green Harbour was awarded a rodent and pest control services contract by FEHD for various districts in the New Territories.
Under the contract, Green Harbour undertook to pay minimum wages to its foremen and workers at a monthly rate of $6,500 and $6,128 respectively.
In September 2004, the defendants told a number of foremen and workers that due to the low contract price, employees of Green Harbour were each required to return $1,100 from their wages to the company, causing their wages to be reduced to a level below t he minimum wage required under the above contract.
To conceal the fraudulent scam, the defendants submitted to FEHD payroll records and supporting bank records which purported to show that wages complying with the minimum wage requirement were paid to those employees.
The defendants told the employees that they should not disclose the wage deduction to FEHD, and threatened to dismiss them should anyone refuse to accept the arrangement.
The court heard that between October and December 2004, the defendants had pocketed a total of $40,153, being sums deducted from the wages of Green Harbour's employees.
The prosecution was today represented by John Marray, counsel on fiat, assisted by ICAC officer Terence Cheung.
Lee Bun-keung, 42, former contract manager of Green Harbour Environmental Services Limited (Green Harbour); and Chau Ping-kuen, 44, former foremen of Green Harbour, were earlier found guilty on one joint charge of conspiracy to defraud.
The ICAC investigation arose from a corruption complaint. Subsequent enquiries revealed a fraudulent scheme to exploit workers of the FEHD contractor.
FEHD had rendered full assistance to the ICAC during its investigation.
The court heard that in June 2004, Green Harbour was awarded a rodent and pest control services contract by FEHD for various districts in the New Territories.
Under the contract, Green Harbour undertook to pay minimum wages to its foremen and workers at a monthly rate of $6,500 and $6,128 respectively.
In September 2004, the defendants told a number of foremen and workers that due to the low contract price, employees of Green Harbour were each required to return $1,100 from their wages to the company, causing their wages to be reduced to a level below t he minimum wage required under the above contract.
To conceal the fraudulent scam, the defendants submitted to FEHD payroll records and supporting bank records which purported to show that wages complying with the minimum wage requirement were paid to those employees.
The defendants told the employees that they should not disclose the wage deduction to FEHD, and threatened to dismiss them should anyone refuse to accept the arrangement.
The court heard that between October and December 2004, the defendants had pocketed a total of $40,153, being sums deducted from the wages of Green Harbour's employees.
The prosecution was today represented by John Marray, counsel on fiat, assisted by ICAC officer Terence Cheung.