Court imposes $680,000 confiscation order on former WSD subcontractor upon ICAC’s application over false inspection reports payment fraud
2026-9-21
The director of a former subcontractor of the Water Supplies Department (WSD), charged by the ICAC, was earlier jailed for 21 months following his guilty plea to submitting false reservoir inspection reports to swindle service payments. The District Court today (September 21) ordered the confiscation of crime proceeds totalling $680,000 from the subcontractor director.
Lau Ho-kei, 45, sole director-cum-shareholder of Helpful Engineering Company Limited (Helpful Engineering), earlier pleaded guilty to one count of conspiracy to defraud, contrary to the Common Law. He was sentenced to 21 months’ imprisonment at the District Court on November 18, 2025.
Prior to sentencing, the prosecution applied to the court for an order to confiscate Lau’s crime proceeds under section 8 of the Organized and Serious Crimes Ordinance. Considering the facts of the case and Lau’s realisable assets condition, District Court Judge Mr Isaac Tam Sze-lok today made an order to confiscate crime proceeds of $680,000 from Lau. He was required to satisfy the order within six months, failing which a default sentence of 20 months shall be imposed.
An ICAC spokesperson noted that the Commission established a dedicated unit in 2010 to deal with the restraint, disclosure and confiscation of criminal assets. The Asset Recovery Office of the Operations Department will continue to pursue confiscation of ill-gotten gains and apply for confiscation orders to deprive criminals of benefiting from crimes connected with bribery and related offences.
Between July 2020 and June 2022, the WSD awarded two term contracts for various waterworks services in the New Territories East District to Ming Hing Waterworks Engineering Company Limited (Ming Hing). Helpful Engineering was subcontracted to conduct inspections at approximately 40 service reservoirs in the district to maintain their safety and condition.
The WSD required its subcontractors to assign a designated number of teams, each consisting of three members to conduct daily inspections. Subcontractors were also required to compile daily inspection reports supported by photographs taken during the inspections.
The ICAC investigation arose from a corruption complaint. Enquiries revealed that at the material time, Helpful Engineering did not conduct the relevant inspections according to the requirements of the WSD. ICAC enquiries also revealed that Lau had instructed Helpful Engineering’s employees to take photographs of waterworks facilities and alter their dates and times purporting that they were taken on different dates. Helpful Engineering’s employees used those photographs to compile the relevant daily inspection reports for submission to the WSD.
Lau had also instructed Helpful Engineering’s employees to prepare false attendance records showing that inspection teams had duly conducted daily inspections at the service reservoirs pursuant to the requirements of the WSD and that each inspection was conducted by three members.
As a result, Lau and the co-defendants had induced the WSD to release service payments to Helpful Engineering. Lau pleaded guilty to one count of conspiracy to defraud involving about $2.4 million in service payments.
The WSD and Ming Hing rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by Public Prosecutor Matthew Hui, assisted by ICAC officer Gavin Lau.
Lau Ho-kei, 45, sole director-cum-shareholder of Helpful Engineering Company Limited (Helpful Engineering), earlier pleaded guilty to one count of conspiracy to defraud, contrary to the Common Law. He was sentenced to 21 months’ imprisonment at the District Court on November 18, 2025.
Prior to sentencing, the prosecution applied to the court for an order to confiscate Lau’s crime proceeds under section 8 of the Organized and Serious Crimes Ordinance. Considering the facts of the case and Lau’s realisable assets condition, District Court Judge Mr Isaac Tam Sze-lok today made an order to confiscate crime proceeds of $680,000 from Lau. He was required to satisfy the order within six months, failing which a default sentence of 20 months shall be imposed.
An ICAC spokesperson noted that the Commission established a dedicated unit in 2010 to deal with the restraint, disclosure and confiscation of criminal assets. The Asset Recovery Office of the Operations Department will continue to pursue confiscation of ill-gotten gains and apply for confiscation orders to deprive criminals of benefiting from crimes connected with bribery and related offences.
Between July 2020 and June 2022, the WSD awarded two term contracts for various waterworks services in the New Territories East District to Ming Hing Waterworks Engineering Company Limited (Ming Hing). Helpful Engineering was subcontracted to conduct inspections at approximately 40 service reservoirs in the district to maintain their safety and condition.
The WSD required its subcontractors to assign a designated number of teams, each consisting of three members to conduct daily inspections. Subcontractors were also required to compile daily inspection reports supported by photographs taken during the inspections.
The ICAC investigation arose from a corruption complaint. Enquiries revealed that at the material time, Helpful Engineering did not conduct the relevant inspections according to the requirements of the WSD. ICAC enquiries also revealed that Lau had instructed Helpful Engineering’s employees to take photographs of waterworks facilities and alter their dates and times purporting that they were taken on different dates. Helpful Engineering’s employees used those photographs to compile the relevant daily inspection reports for submission to the WSD.
Lau had also instructed Helpful Engineering’s employees to prepare false attendance records showing that inspection teams had duly conducted daily inspections at the service reservoirs pursuant to the requirements of the WSD and that each inspection was conducted by three members.
As a result, Lau and the co-defendants had induced the WSD to release service payments to Helpful Engineering. Lau pleaded guilty to one count of conspiracy to defraud involving about $2.4 million in service payments.
The WSD and Ming Hing rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by Public Prosecutor Matthew Hui, assisted by ICAC officer Gavin Lau.