Five years' jail for $9m shelters fraud
2015-1-7
A former subcontractor of the Leisure and Cultural Services Department (LCSD), charged by the ICAC, was today (Wednesday) sentenced to five years' imprisonment for using false invoices to deceive project payments totalling about $9 million from the LCSD in relation to the supply and installation of shelters at public parks and gardens.
Sebastian Pang Kin-chi, 54, a shareholder-cum-director of Spark Fair Limited (SFL), was earlier found guilty at the District Court of 18 counts of using a false instrument, contrary to Section 73 of the Crimes Ordinance.
In sentencing, Judge Alex Lee Wan-tang remarked that the offences committed by the defendant were deliberate and premeditated, and lasted a long period of time.
The judge also reprimanded the defendant for undermining Hong Kong's reputation in the international business circle.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that at the material time, SFL was subcontracted by two term contractors of the LCSD to supply and install shelters made by Japan-based Nakamura Manufacturing Corporation (NMC) at public parks and gardens managed by the LCSD.
As a shareholder-cum-director of SFL, the defendant was authorised by the term contractors to contact the Technical Unit (TU) of LCSD for carrying out works orders issued by TU.
Between October 2006 and February 2011, the LCSD issued a number of works orders, 60 of which were related to the installation of 93 NMC shelters at various parks and gardens of the LCSD.
The court heard that the defendant attended monthly meetings with the two term contractors and the LCSD.
At those meetings, the defendant claimed that shelters manufactured by NMC were installed at those parks and gardens. In fact, 93 counterfeit products were used instead.
Although the defendant knew that counterfeit shelters were installed at those parks and gardens, SFL submitted 60 invoices to the LCSD on behalf of the two term contractors to seek payments for the works orders concerned.
As a result, the LCSD made payments totalling about $9 million to the two terms contractors and/or SFL.
Should the LCSD know that the shelters installed by SFL were counterfeit products, the department would not effect those payments, the court was told.
The LCSD and NMC had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Liza Yip, assisted by ICAC officer Karmen Cheung.
Sebastian Pang Kin-chi, 54, a shareholder-cum-director of Spark Fair Limited (SFL), was earlier found guilty at the District Court of 18 counts of using a false instrument, contrary to Section 73 of the Crimes Ordinance.
In sentencing, Judge Alex Lee Wan-tang remarked that the offences committed by the defendant were deliberate and premeditated, and lasted a long period of time.
The judge also reprimanded the defendant for undermining Hong Kong's reputation in the international business circle.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that at the material time, SFL was subcontracted by two term contractors of the LCSD to supply and install shelters made by Japan-based Nakamura Manufacturing Corporation (NMC) at public parks and gardens managed by the LCSD.
As a shareholder-cum-director of SFL, the defendant was authorised by the term contractors to contact the Technical Unit (TU) of LCSD for carrying out works orders issued by TU.
Between October 2006 and February 2011, the LCSD issued a number of works orders, 60 of which were related to the installation of 93 NMC shelters at various parks and gardens of the LCSD.
The court heard that the defendant attended monthly meetings with the two term contractors and the LCSD.
At those meetings, the defendant claimed that shelters manufactured by NMC were installed at those parks and gardens. In fact, 93 counterfeit products were used instead.
Although the defendant knew that counterfeit shelters were installed at those parks and gardens, SFL submitted 60 invoices to the LCSD on behalf of the two term contractors to seek payments for the works orders concerned.
As a result, the LCSD made payments totalling about $9 million to the two terms contractors and/or SFL.
Should the LCSD know that the shelters installed by SFL were counterfeit products, the department would not effect those payments, the court was told.
The LCSD and NMC had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Liza Yip, assisted by ICAC officer Karmen Cheung.