Trio arrested and charged for alleged $21m payments fraud over road resurfacing works
2011-8-18
Two directors and a consultant of an asphalt company have been arrested and charged by the ICAC with conspiracy to defraud the Highways Department (HyD), a main contractor and its subcontractor of over $21 million in payments for the supply of bituminous materials used in road resurfacing works.
Cheuk King, 50, and his son Cheuk Yau-ping, 27, a graduate engineer, respectively a consultant and a director of Adrian Environmental & Waste Technologies Limited (Adrian); and Chan Kwai-wah, 58, another director of Adrian, were arrested yesterday (August 17) and charged jointly with one count of conspiracy to defraud.
The defendants will appear at Tuen Mun Magistracy at 9:30 am tomorrow (August 19) for transfer to the District Court for plea.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the alleged conspiracy offence.
At the material time, HyD launched a term contract for using approved friction course bituminous materials to resurface high speed roads in the Hong Kong Port Area, Kowloon and New Territories West.
Chiu Hing Construction and Transportation Company Limited (Chiu Hing) was the main contractor of the term contract, while Wah Fung Engineering Company Limited (Wah Fung) was the resurfacing subcontractor. Adrian was designated by Chiu Hing as the supplie r of bituminous materials.
The charge alleges that between April 7, 2008 and August 17, 2009, the defendants conspired together to defraud HyD, Chiu Hing and Wah Fung.
The defendants were alleged to have dishonestly caused Adrian to supply friction course bituminous materials which did not comply with the requirements of the specifications of the HyD term contract.
They were also alleged to have concealed the fact that the materials supplied by Adrian did not comply with the said requirements; and caused HyD, Chiu Hing and Wah Fung to use the materials in the road resurfacing works of the term contract.
As a result, HyD, Chiu Hing and Wah Fung were caused to release to Adrian payments for the materials, which were said to amount to over $21 million.
HyD, Chiu Hing and Wah Fung had rendered full assistance to the ICAC during its investigation.
The defendants have been released on ICAC bail, pending their court appearance tomorrow.
Cheuk King, 50, and his son Cheuk Yau-ping, 27, a graduate engineer, respectively a consultant and a director of Adrian Environmental & Waste Technologies Limited (Adrian); and Chan Kwai-wah, 58, another director of Adrian, were arrested yesterday (August 17) and charged jointly with one count of conspiracy to defraud.
The defendants will appear at Tuen Mun Magistracy at 9:30 am tomorrow (August 19) for transfer to the District Court for plea.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the alleged conspiracy offence.
At the material time, HyD launched a term contract for using approved friction course bituminous materials to resurface high speed roads in the Hong Kong Port Area, Kowloon and New Territories West.
Chiu Hing Construction and Transportation Company Limited (Chiu Hing) was the main contractor of the term contract, while Wah Fung Engineering Company Limited (Wah Fung) was the resurfacing subcontractor. Adrian was designated by Chiu Hing as the supplie r of bituminous materials.
The charge alleges that between April 7, 2008 and August 17, 2009, the defendants conspired together to defraud HyD, Chiu Hing and Wah Fung.
The defendants were alleged to have dishonestly caused Adrian to supply friction course bituminous materials which did not comply with the requirements of the specifications of the HyD term contract.
They were also alleged to have concealed the fact that the materials supplied by Adrian did not comply with the said requirements; and caused HyD, Chiu Hing and Wah Fung to use the materials in the road resurfacing works of the term contract.
As a result, HyD, Chiu Hing and Wah Fung were caused to release to Adrian payments for the materials, which were said to amount to over $21 million.
HyD, Chiu Hing and Wah Fung had rendered full assistance to the ICAC during its investigation.
The defendants have been released on ICAC bail, pending their court appearance tomorrow.