Four guilty of fraud over subcontracting $106m FEHD cleaning contracts
2006-8-2
Four persons, charged by the ICAC, were today (Wednesday) convicted at the District Court of conspiring to defraud the Food and Environmental Hygiene Department (FEHD) in relation to the subcontracting of seven FEHD cleaning contracts.
Ha Kam-kaye, 72, a director and general manager of Wai Hong Waste Management Limited (Wai Hong Waste); Wong Siu-sing, 43, operator of A&T Service Company; Ng Wai-ming, 39, proprietor of Ming Kee Cleaning Services Limited; and Tam Man-kwong, 57, proprietor of Wai Shing Cle aning Company, were found guilty of three counts of conspiracy to defraud.
Judge Chua adjourned the case until 9:30 am tomorrow (Thursday) for mitigation.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the fraud offences.
The court heard that between October 2001 and October 2004, Wai Hong Cleaning & Pest Control Company Limited (Wai Hong) had been awarded seven cleaning contracts worth over $106 million by FEHD.
Wai Hong Waste was set up by Wai Hong as its subsidiary to carry out the cleaning contracts.
FEHD prohibited its contractors from subcontracting any part of the cleaning contracts to others, without the prior written approval of the department.
Between June 2001 and December 2003, Ha and Wong falsely represented to FEHD that Wong and the cleaning workers recruited by him were all employees of Wai Hong.
They concealed from FEHD that two of the contracts, valued at about $46 million for the provision of cleaning services awarded by FEHD to Wai Hong by way of tender, had been subcontracted to Wong.
They also falsely represented that the above contracts were performed by Wai Hong and had not been subcontracted to others, causing FEHD not to take proper action against Wai Hong.
Ha and Ng were convicted of a similar offence in relation to the subcontracting of three other FEHD cleaning contracts, worth about $36 million, between January 2002 and October 2004.
Ha and Tam were found guilty of another similar offence, which took place between August 2001 and October 2004 in relation to the subcontracting of two other FEHD cleaning contracts valued at about $24 million.
Had FEHD known that the contracts would be subcontracted by Wai Hong, the department might not award the contracts to the company, the court was told.
The defendants were granted cash bail ranging from $30,000 to $50,000. They were also ordered not to leave Hong Kong.
The prosecution was today represented by Shaun Kelly, counsel on fiat, assisted by ICAC officer Andy Yu.
Ha Kam-kaye, 72, a director and general manager of Wai Hong Waste Management Limited (Wai Hong Waste); Wong Siu-sing, 43, operator of A&T Service Company; Ng Wai-ming, 39, proprietor of Ming Kee Cleaning Services Limited; and Tam Man-kwong, 57, proprietor of Wai Shing Cle aning Company, were found guilty of three counts of conspiracy to defraud.
Judge Chua adjourned the case until 9:30 am tomorrow (Thursday) for mitigation.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the fraud offences.
The court heard that between October 2001 and October 2004, Wai Hong Cleaning & Pest Control Company Limited (Wai Hong) had been awarded seven cleaning contracts worth over $106 million by FEHD.
Wai Hong Waste was set up by Wai Hong as its subsidiary to carry out the cleaning contracts.
FEHD prohibited its contractors from subcontracting any part of the cleaning contracts to others, without the prior written approval of the department.
Between June 2001 and December 2003, Ha and Wong falsely represented to FEHD that Wong and the cleaning workers recruited by him were all employees of Wai Hong.
They concealed from FEHD that two of the contracts, valued at about $46 million for the provision of cleaning services awarded by FEHD to Wai Hong by way of tender, had been subcontracted to Wong.
They also falsely represented that the above contracts were performed by Wai Hong and had not been subcontracted to others, causing FEHD not to take proper action against Wai Hong.
Ha and Ng were convicted of a similar offence in relation to the subcontracting of three other FEHD cleaning contracts, worth about $36 million, between January 2002 and October 2004.
Ha and Tam were found guilty of another similar offence, which took place between August 2001 and October 2004 in relation to the subcontracting of two other FEHD cleaning contracts valued at about $24 million.
Had FEHD known that the contracts would be subcontracted by Wai Hong, the department might not award the contracts to the company, the court was told.
The defendants were granted cash bail ranging from $30,000 to $50,000. They were also ordered not to leave Hong Kong.
The prosecution was today represented by Shaun Kelly, counsel on fiat, assisted by ICAC officer Andy Yu.