Ex-senior engineer jailed for fraud over viaduct project

2009-7-8

A former senior engineer of a subcontractor in a Highways Department (HyD) project, charged by the ICAC, was today (Wednesday) sentenced to one year’s imprisonment at the District Court for fraud over the construction of the Castle Peak Road – New Tai Lam Section (the project).

Franky Au Yeung Chi-ho, 32, formerly employed by Alga (Far East) Limited (Alga), was earlier found guilty of one count of conspiracy to defraud and one of fraud.

In sentencing, Deputy Judge David Dufton noted that custodial sentence must be meted out to the defendant to ensure the integrity of the construction industry.

The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the fraud offences.

The court heard that Gammon Construction Limited (Gammon) was awarded a $608 million contract in 2003 by HyD for road improvement on Castle Peak Road. The project included the construction of an 800-metre long viaduct connecting Tai Lam Kok and Siu Lam.

Gammon then subcontracted Alga to conduct the tendon stressing work of the project, in which the defendant was the project engineer.

The court heard that on one occasion in June 2004, a foreman of Alga, while conducting a tendon stressing process, observed that the tendon elongation showed significant variations from the usual measurements, and reported the matter to the defendant.

The defendant then told the foreman to ignore the actual elongation measurements, and adopt a set of figures given by the defendant.

Between June 2004 and June 2006, the defendant conspired with the foreman to defraud Gammon by dishonestly providing false measurements of elongation of stressed tendons during various tendon stressing processes.

Under the supervision of the defendant, the foreman conducted about 50 tendon stressing processes during the period. Around 60% to 70% of the actual elongation measurements were different from the figures given by the defendant.

The court heard that between March and August 2006, the defendant also provided false measurements of elongation of stressed tendons through a worker of Alga during the tendon stressing processes.

During the period, the worker conducted about 10 tendon stressing processes under the supervision of the defendant. About 30% to 40% of the actual elongation measurements were different from the figures given by the defendant.

As a result, Gammon was caused or induced to accept the measurements as accurate and not to take any actions, including taking any rectification measures, in respect of the said tendons or any structure relating thereto, the court was told.

HyD had rendered full assistance to the ICAC during its investigation.

The prosecution was today represented by prosecuting counsel Neil Mitchell, assisted by ICAC officer Gary Wong.
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