Duo admit conspiracy to defraud DSD over trade effluent surcharges
2008-2-11
Two employees of a consultancy company, charged by the ICAC, today (Monday) admitted at the District Court that they had defrauded the Drainage Services Department (DSD) by dishonestly causing DSD to charge a number of restaurants about $740,000 lesser tr ade effluent surcharges (TES).
Li Shuk-han, 44, a manageress of Artal (China) Limited (Artal), and Fung Man-hing, 41, a supervisor of Artal, pleaded guilty to one count of conspiracy to defraud DSD.
Li further admitted one count of conspiracy to defraud the Environmental Protection Department (EPD) by submitting false laboratory reports.
Deputy Judge Josiah Lam Wai-kuen adjourned the case until February 25 for sentence, pending community service order reports. Li and Fung were granted cash bail of $20,000 and $5,000 respectively.
The case arose from a corruption report. Subsequent ICAC enquiries revealed the above alleged offences.
The court heard that Artal was a consultancy company providing grease trap cleaning to its client restaurants and taking care of their appeal applications in relation to the reduction of TES.
Artal first charged its clients at an agreed rate, which was lower than the standard TES rate. The company then filed an appeal application with DSD for a reduced rate and earned profits from the difference.
The court heard that between January 1 and December 31, 2005, Li and Fung had conspired with other persons to defraud DSD.
Li and Fung had dishonestly arranged unreported grease trap cleaning for restaurants which employed Artal as consultant, and falsely represented the dates of grease trap cleaning of the restaurants.
They also submitted false information to DSD, and caused DSD to charge the restaurants lesser TES.
The loss suffered by DSD for reduced TES was estimated to be about $740,000. Had DSD been aware of the unreported grease trap cleaning, it would not have approved the applications and might require the applicants to pay TES at the standard rate.
The court also heard that Li had conspired with another person to defraud EPD between October 1 and December 31, 2005.
She had submitted to EPD false laboratory reports about the wastewater discharges of restaurants which employed Artal as consultant, causing EPD to grant to the restaurants licence for discharge of wastewater and not to take action against the restaurants , the court was told.
The prosecution was today represented by prosecuting counsel Juliana Chow, assisted by ICAC officer Irene Wang.
Li Shuk-han, 44, a manageress of Artal (China) Limited (Artal), and Fung Man-hing, 41, a supervisor of Artal, pleaded guilty to one count of conspiracy to defraud DSD.
Li further admitted one count of conspiracy to defraud the Environmental Protection Department (EPD) by submitting false laboratory reports.
Deputy Judge Josiah Lam Wai-kuen adjourned the case until February 25 for sentence, pending community service order reports. Li and Fung were granted cash bail of $20,000 and $5,000 respectively.
The case arose from a corruption report. Subsequent ICAC enquiries revealed the above alleged offences.
The court heard that Artal was a consultancy company providing grease trap cleaning to its client restaurants and taking care of their appeal applications in relation to the reduction of TES.
Artal first charged its clients at an agreed rate, which was lower than the standard TES rate. The company then filed an appeal application with DSD for a reduced rate and earned profits from the difference.
The court heard that between January 1 and December 31, 2005, Li and Fung had conspired with other persons to defraud DSD.
Li and Fung had dishonestly arranged unreported grease trap cleaning for restaurants which employed Artal as consultant, and falsely represented the dates of grease trap cleaning of the restaurants.
They also submitted false information to DSD, and caused DSD to charge the restaurants lesser TES.
The loss suffered by DSD for reduced TES was estimated to be about $740,000. Had DSD been aware of the unreported grease trap cleaning, it would not have approved the applications and might require the applicants to pay TES at the standard rate.
The court also heard that Li had conspired with another person to defraud EPD between October 1 and December 31, 2005.
She had submitted to EPD false laboratory reports about the wastewater discharges of restaurants which employed Artal as consultant, causing EPD to grant to the restaurants licence for discharge of wastewater and not to take action against the restaurants , the court was told.
The prosecution was today represented by prosecuting counsel Juliana Chow, assisted by ICAC officer Irene Wang.