Ex-engineering firm proprietor gets 35 months for $45m bribery over tender rigging exercises
2016-9-29
A former proprietor of an engineering company, who was charged by the ICAC, was today (Thursday) sentenced to 35 months’ imprisonment at the District Court for having conspired with others to offer about $45 million in bribes to secure consultancy and renovation contracts of two residential estates in Shatin through tender rigging exercises.
Yau Shui-tin, 59, was also ordered to pay within 30 months restitutions of $200,000 and $50,000 to the incorporated owners (IO) of Ravana Garden and the IO of Garden Vista respectively.
In sentencing, Judge Josiah Lam Wai-kuen said the offences committed by the defendant were serious as he lined up meetings that procure tender riggings involving substantial amount of money.
The judge said although the defendant reported the matter to the ICAC for his own interest, the incident nevertheless heightened public awareness towards tender riggings in building renovation projects.
The judge added that he reduced the defendant’s jail term to 35 months after taking into account his guilty plea and other mitigating factors.
The defendant earlier pleaded guilty to four counts of conspiracy to offer an advantage to an agent, contrary to Section 9(2)(a) of the Prevention of Bribery Ordinance and Section 159A of the Crimes Ordinance. Another similar charge against him was ordered to be left on court file.
The court heard that at the material time, the defendant was involved in building renovation works for various buildings as he was a proprietor of an engineering company.
In December 2010, the IO of Garden Vista, a residential estate in Shatin, resolved to implement a building renovation project.
A then property manager of the management company of Garden Vista requested the defendant to look for consultants and contractors for the renovation project.
The defendant asked a shareholder of an architectural firm to arrange a dinner meeting at a restaurant to discuss the matter.
Apart from the defendant, the shareholder of the architectural firm, a director of a renovation consultancy firm, a director of a construction company, the then property manager and the then director of the management company and an office bearer of the IO of Garden Vista were said to have attended the meeting.
The court heard that at the meeting, it was agreed that the then property manager, the then director of the management company and the office bearer of the IO of Garden Vista would be respectively given 1%, 6% and 10% of the project sum as rewards for assisting the consultancy firm and the construction company to be engaged in the project.
As a result, the consultancy contract was awarded at $880,000 in March 2012, while the renovation contract was awarded at $262 million in July 2013. Based on the value of the renovation contract, the bribes of 1%, 6% and 10% amounted to about $2.6 million, $15 million and $26 million respectively.
The court also heard that in November 2004, the IO of Ravana Garden, another residential estate in Shatin, resolved to implement a building renovation project.
A member of the renovation sub-committee of the IO of Ravana Garden approached the defendant and asked him to identify for consultancy firms to bid for the project.
The defendant contacted a manager of a construction company, who then arranged for them to meet a director of another renovation consultancy firm to discuss tender matters at a dinner meeting in another restaurant.
At the meeting, it was agreed that the director of the consultancy firm would offer $600,000 to the renovation sub-committee member for securing the project worth about $30 million, with part of the works subcontracted to the renovation sub-committee member and the defendant, the court was told.
The prosecution was today represented by prosecuting counsel Wong Hay-yiu, assisted by ICAC officer Samson Lee.
Yau Shui-tin, 59, was also ordered to pay within 30 months restitutions of $200,000 and $50,000 to the incorporated owners (IO) of Ravana Garden and the IO of Garden Vista respectively.
In sentencing, Judge Josiah Lam Wai-kuen said the offences committed by the defendant were serious as he lined up meetings that procure tender riggings involving substantial amount of money.
The judge said although the defendant reported the matter to the ICAC for his own interest, the incident nevertheless heightened public awareness towards tender riggings in building renovation projects.
The judge added that he reduced the defendant’s jail term to 35 months after taking into account his guilty plea and other mitigating factors.
The defendant earlier pleaded guilty to four counts of conspiracy to offer an advantage to an agent, contrary to Section 9(2)(a) of the Prevention of Bribery Ordinance and Section 159A of the Crimes Ordinance. Another similar charge against him was ordered to be left on court file.
The court heard that at the material time, the defendant was involved in building renovation works for various buildings as he was a proprietor of an engineering company.
In December 2010, the IO of Garden Vista, a residential estate in Shatin, resolved to implement a building renovation project.
A then property manager of the management company of Garden Vista requested the defendant to look for consultants and contractors for the renovation project.
The defendant asked a shareholder of an architectural firm to arrange a dinner meeting at a restaurant to discuss the matter.
Apart from the defendant, the shareholder of the architectural firm, a director of a renovation consultancy firm, a director of a construction company, the then property manager and the then director of the management company and an office bearer of the IO of Garden Vista were said to have attended the meeting.
The court heard that at the meeting, it was agreed that the then property manager, the then director of the management company and the office bearer of the IO of Garden Vista would be respectively given 1%, 6% and 10% of the project sum as rewards for assisting the consultancy firm and the construction company to be engaged in the project.
As a result, the consultancy contract was awarded at $880,000 in March 2012, while the renovation contract was awarded at $262 million in July 2013. Based on the value of the renovation contract, the bribes of 1%, 6% and 10% amounted to about $2.6 million, $15 million and $26 million respectively.
The court also heard that in November 2004, the IO of Ravana Garden, another residential estate in Shatin, resolved to implement a building renovation project.
A member of the renovation sub-committee of the IO of Ravana Garden approached the defendant and asked him to identify for consultancy firms to bid for the project.
The defendant contacted a manager of a construction company, who then arranged for them to meet a director of another renovation consultancy firm to discuss tender matters at a dinner meeting in another restaurant.
At the meeting, it was agreed that the director of the consultancy firm would offer $600,000 to the renovation sub-committee member for securing the project worth about $30 million, with part of the works subcontracted to the renovation sub-committee member and the defendant, the court was told.
The prosecution was today represented by prosecuting counsel Wong Hay-yiu, assisted by ICAC officer Samson Lee.