Duo sentenced for graft over renovation works at residential building

2009-4-17

The proprietor of a construction and engineering company and his subcontractor, charged by the ICAC, were today (Friday) sentenced at Tsuen Wan Magistracy for bribery in relation to renovation works at a private residential building in Kwai Chung.

Lo Chau-yuen, 54, proprietor of Sun Hang Wai Engineering and Construction Company (SHW), received an imprisonment of seven months, while his subcontractor Tang Wai-keung, 44, was jailed for two months, suspended for two years.

In sentencing, Deputy Magistrate Ms Gekko Lan Suet-ying said she meted out an immediate custodial sentence to Lo in view of the seriousness of the bribery offences.

The magistrate added that Tang was given a suspended sentence as he played a relatively minor role in the bribery scam.

Lo was yesterday found guilty of one count of offering an advantage to an agent and one of conspiracy to offer an advantage to an agent, while Tang earlier admitted two charges of offering an advantage to an agent.

The court heard that in 2004, the Buildings Department issued a repair order to the incorporated owners (IO) of Kwong Fai Mansion, a private residential building in Kwai Chung.

SHW was subsequently selected as the contractor for the renovation works during an owners’ general meeting of the building. However, at another general meeting, owners disputed over the renovation works, including the contract price.

Against this background, the then chairman of the IO of the building signed a $2.1 million renovation contract with SHW.

In order to monitor the renovation works, a working group was formed at a general meeting of the IO of the building held in January 2007.

As the working group found irregularities in relation to the contract, it was resolved at a subsequent general meeting that the renovation works be suspended.

The court heard that in mid April 2007, Tang called the convenor of the working group, who holds four units of the building on behalf of an institution, and told him that he wanted to resume the renovation works.

On June 6, 2007, Tang again telephoned the above convenor and arranged a meeting at a hotel.

At the meeting, Tang persuaded the convenor not to intervene in the renovation works and offered to waive his renovation fee by 50 per cent, which was equivalent to about $70,000. The convenor did not accede to the offer.

At another general meeting held on July 31, 2007, the convenor was elected as the vice-chairman of the IO of the building.

On August 31, 2007, Lo and Tang attended a meeting with the convenor. During the meeting, Lo offered to waive the full renovation fee as a reward for the convenor’s support for SHW to resume the renovation works.

After being arrested by ICAC officers, Tang admitted under caution that he acted under the instruction of Lo, the court was told.

The prosecution was today represented by prosecuting counsel Kelly Shui, assisted by ICAC officer Fiona Chan.
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