An employee of a supermarket chain and a sole proprietor of a trading company have been charged by the ICAC for their alleged roles in an $8 million fraud in relation to the purchase of food expiry labels.

Cheung Ying-tat, 33, senior production coordinator of PARKnSHOP, and Shek Chi-hang, 42, sole proprietor of Hang Tat International Trading Company (Hang Tat), who were charged yesterday (October 18), face a joint charge of conspiracy to defraud.

The defendants will appear at Eastern Magistracy at 9:30 am tomorrow (October 20) for transfer to the District Court for plea.

The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above alleged conspiracy offence.

At the material time, Shek, who traded as Hang Tat, supplied food expiry labels to its major customer –'96 PARKnSHOP; while Cheung was employed by PARKnSHOP as senior production coordinator posted to its fresh food distribution centre.

The centre was tasked to pack fresh food products received from suppliers and distribute them to various branches of PARKnSHOP for sale. During the packing process, labels showing the expiry date were required to be affixed on the products.

The charge alleges that between July 2007 and December 2010, Cheung and Shek conspired together to defraud PARKnSHOP.

The defendants are alleged to have dishonestly caused PARKnSHOP to acquire and pay for the labels from Hang Tat at an inflated cost, and concealed from PARKnSHOP that the labels were of no use to the centre.

The cost of the labels inflated by the defendants was said to amount to $8.15 million.

PARKnSHOP has rendered full assistance to the ICAC during its investigation.

The defendants have been released on ICAC bail, pending their court appearance tomorrow.