Yuen Long small house ‘Ding Rights’ cases: One more applicant charged by ICAC admits conspiracy to defraud Lands Department
2025-1-17
The ICAC had earlier charged the operator of a small house developer, a village representative and small house applicants, totalling 11 people, for conspiring together to deceive the Lands Department into granting various building licences for a small house estate development project in Yuen Long by transferring “Ding Rights”. Following the guilty pleas and jailing of two of the applicants, one more applicant today (January 17) entered guilty plea at the Tuen Mun Magistrates’ Courts.
Small house applicant Leung Kam-yick, 74, today pleaded guilty to one count of conspiracy to defraud, contrary to the Common Law. Acting Principal Magistrate Mr David Cheung Chi-wai adjourned the case to May 9 for mention and granted Leung’s bail.
Under the New Territories Small House Policy, every male indigenous inhabitant of the New Territories aged 18 or above may exercise his “Ding Right” once and apply to the Lands Department for building a small house within a recognised village of the New Territories for his own occupation. A “Ding Right” is not transferrable.
The court heard that in June 2006, Leung made an application to the Lands Department for building a small house in Shui Tsiu San Tsuen in Yuen Long for his own occupation. He claimed that he was the sole legal and registered owner of the lot of land concerned, had never entered into any agreements with others to transfer or otherwise deal with his lot of land or relevant interests, and had no intention to sell his “Ding Rights” to other individuals or developers. The Lands Department subsequently granted him the building licence.
The ICAC investigation arose from a corruption complaint. Enquiries revealed that since November 1991, a number of individuals, including Leung, had applied for building small houses in Shui Tsiu San Tsuen. The small houses were subsequently sold to members of the public by a developer under the name of a private estate, and each small house was sold at market price ranging from $9 to $13 million. The developer received over $1,000 million for the sale of 115 small houses in the private estate, and the small house of Leung was sold in 2015.
The ICAC enquiries also revealed that since the 1990s, an indigenous inhabitant representative and other middlemen started the development of the estate project in Shui Tsiu San Tsuen by purchasing “Ding Rights” from indigenous inhabitants of Yuen Long. Leung had conspired with some middlemen to sell his “Ding Rights” at $100,000.
Later in about March 2005, a developer entered into an agreement with the indigenous inhabitant representative and appointed the latter as its trustee to jointly develop the small house project. The indigenous inhabitant representative and the middlemen then continued to purchase more “Ding Rights” from indigenous inhabitants and arranged for them to apply for building licences to build small houses in Shui Tsiu San Tsuen.
The Lands Department rendered full assistance to the ICAC during its investigation into the cases. The prosecution was today represented by ICAC officer Astor Yu.
Edward Wong Kwong-wing, operator of Wing Smart Construction Limited, and Ching Chan-ming, indigenous inhabitant representative of Shui Tsiu San Tsuen, were earlier charged by the ICAC with one count of conspiracy to defraud in another case for their alleged involvements in the “Ding Rights” transfer scam. Their case is set for trial at the District Court on February 10.
Eight other small house applicants allegedly involved in the scam were also charged by the ICAC with conspiracy to defraud. Two of them were each jailed for one year after entering guilty pleas. Five other co-defendants, who pleaded not guilty to their charges in court today, will attend a pre-trial review on May 9. The plea of the remaining defendant was also adjourned to May 9.
Small house applicant Leung Kam-yick, 74, today pleaded guilty to one count of conspiracy to defraud, contrary to the Common Law. Acting Principal Magistrate Mr David Cheung Chi-wai adjourned the case to May 9 for mention and granted Leung’s bail.
Under the New Territories Small House Policy, every male indigenous inhabitant of the New Territories aged 18 or above may exercise his “Ding Right” once and apply to the Lands Department for building a small house within a recognised village of the New Territories for his own occupation. A “Ding Right” is not transferrable.
The court heard that in June 2006, Leung made an application to the Lands Department for building a small house in Shui Tsiu San Tsuen in Yuen Long for his own occupation. He claimed that he was the sole legal and registered owner of the lot of land concerned, had never entered into any agreements with others to transfer or otherwise deal with his lot of land or relevant interests, and had no intention to sell his “Ding Rights” to other individuals or developers. The Lands Department subsequently granted him the building licence.
The ICAC investigation arose from a corruption complaint. Enquiries revealed that since November 1991, a number of individuals, including Leung, had applied for building small houses in Shui Tsiu San Tsuen. The small houses were subsequently sold to members of the public by a developer under the name of a private estate, and each small house was sold at market price ranging from $9 to $13 million. The developer received over $1,000 million for the sale of 115 small houses in the private estate, and the small house of Leung was sold in 2015.
The ICAC enquiries also revealed that since the 1990s, an indigenous inhabitant representative and other middlemen started the development of the estate project in Shui Tsiu San Tsuen by purchasing “Ding Rights” from indigenous inhabitants of Yuen Long. Leung had conspired with some middlemen to sell his “Ding Rights” at $100,000.
Later in about March 2005, a developer entered into an agreement with the indigenous inhabitant representative and appointed the latter as its trustee to jointly develop the small house project. The indigenous inhabitant representative and the middlemen then continued to purchase more “Ding Rights” from indigenous inhabitants and arranged for them to apply for building licences to build small houses in Shui Tsiu San Tsuen.
The Lands Department rendered full assistance to the ICAC during its investigation into the cases. The prosecution was today represented by ICAC officer Astor Yu.
Edward Wong Kwong-wing, operator of Wing Smart Construction Limited, and Ching Chan-ming, indigenous inhabitant representative of Shui Tsiu San Tsuen, were earlier charged by the ICAC with one count of conspiracy to defraud in another case for their alleged involvements in the “Ding Rights” transfer scam. Their case is set for trial at the District Court on February 10.
Eight other small house applicants allegedly involved in the scam were also charged by the ICAC with conspiracy to defraud. Two of them were each jailed for one year after entering guilty pleas. Five other co-defendants, who pleaded not guilty to their charges in court today, will attend a pre-trial review on May 9. The plea of the remaining defendant was also adjourned to May 9.