Four admit using bogus quotations to secure $470,000 inspection and repair works
2018-1-4
A former chairlady of the incorporated owners (IO) of an industrial building and three contractors, charged by the ICAC, admitted at the Kowloon City Magistracy today (January 4) that they had conspired to use bogus quotations to help an engineering company secure over $470,000 worth of mandatory building inspection and necessary repair works at the industrial building.
Stella Lam Sui-lin, 65, former chairlady of the IO of Fuk Hong Industrial Building; Yeung Ho-ki, 40, sole proprietor of Key Power Water-proof Engineering Company (KPW); Lam Kwai-lung, 29, partner of O&H Design House (O&H); and Yau Tai-hung, 49, director of Ho Hin Engineering (HK) Limited (HHE), pleaded guilty to a joint charge of conspiracy to use false instruments, contrary to Sections 73 and 159A of the Crimes Ordinance.
Magistrate Miss Veronica Heung Shuk-han adjourned the case until January 17 this year for sentence, pending community service order reports. The defendants were granted bail.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offence.
The court heard that at the material time, Stella Lam was the chairlady of the IO of Fuk Hong Industrial Building in Tong Mi Road, Mong Kok. Yeung, Lam Kwai-lung and Yau were respectively the sole proprietor of KPW, a partner of O&H and a director of HHE.
In December 2014, the Buildings Department issued a notice to the IO of Fuk Hong Industrial Building requiring it to conduct mandatory building inspection and necessary repair works at the industrial building.
On September 9, 2015, a meeting with some of the IO members was held to discuss the works. Stella Lam invited Chan Sze-ka and Ma Kam-sing, both directors of Sky Win Engineering Limited (SWE), to present its quotations to the IO members.
Despite queries on the single quotation arrangement, Stella Lam suggested that the works in four contracts, totalling over $470,000, should be awarded to SWE. One or two days later, SWE subcontracted related works to KPW.
According to the Building Management Ordinance, at least five quotations were required for contracts involving over $200,000.
The court heard that after the IO meeting, Stella Lam requested Chan to obtain four sets of backdated quotations at different prices from other contractors, so that the IO could have the justification for awarding the works to SWE.
Acceding to the request, Chan asked Lam Kwai-lung, Yau and Ma to provide her with quotations of their respective companies – O&H, HHE and Shine Engineering Service Company (SES). Upon Chan’s request, Ma sought Yeung’s assistance in providing him with the quotations of KPW.
Chan and Ma told Yeung, Lam Kwai-lung and Yau that their quotations were not for genuine bidding of the works but only for fulfilling the requirement of the IO. The trio agreed to offer assistance.
On September 17, 2015, Chan handed over the false quotations to Stella Lam, who subsequently prepared and signed the minutes of the IO meeting falsely representing that the IO had resolved to award the works to SWE after discussing the quotations of five bidders, namely SWE, KPW, O&H, HHE and SES, the court was told.
Chan, 34, and Ma, 31, were also charged by the ICAC for their roles in the scam in a separate case. They earlier pleaded guilty to a joint charge of conspiracy to use false instruments, and had their case adjourned to January 19 this year for sentence.
The IO of Fuk Hong Industrial Building had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Marco Li, assisted by ICAC officer Stephen Leung.
Stella Lam Sui-lin, 65, former chairlady of the IO of Fuk Hong Industrial Building; Yeung Ho-ki, 40, sole proprietor of Key Power Water-proof Engineering Company (KPW); Lam Kwai-lung, 29, partner of O&H Design House (O&H); and Yau Tai-hung, 49, director of Ho Hin Engineering (HK) Limited (HHE), pleaded guilty to a joint charge of conspiracy to use false instruments, contrary to Sections 73 and 159A of the Crimes Ordinance.
Magistrate Miss Veronica Heung Shuk-han adjourned the case until January 17 this year for sentence, pending community service order reports. The defendants were granted bail.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offence.
The court heard that at the material time, Stella Lam was the chairlady of the IO of Fuk Hong Industrial Building in Tong Mi Road, Mong Kok. Yeung, Lam Kwai-lung and Yau were respectively the sole proprietor of KPW, a partner of O&H and a director of HHE.
In December 2014, the Buildings Department issued a notice to the IO of Fuk Hong Industrial Building requiring it to conduct mandatory building inspection and necessary repair works at the industrial building.
On September 9, 2015, a meeting with some of the IO members was held to discuss the works. Stella Lam invited Chan Sze-ka and Ma Kam-sing, both directors of Sky Win Engineering Limited (SWE), to present its quotations to the IO members.
Despite queries on the single quotation arrangement, Stella Lam suggested that the works in four contracts, totalling over $470,000, should be awarded to SWE. One or two days later, SWE subcontracted related works to KPW.
According to the Building Management Ordinance, at least five quotations were required for contracts involving over $200,000.
The court heard that after the IO meeting, Stella Lam requested Chan to obtain four sets of backdated quotations at different prices from other contractors, so that the IO could have the justification for awarding the works to SWE.
Acceding to the request, Chan asked Lam Kwai-lung, Yau and Ma to provide her with quotations of their respective companies – O&H, HHE and Shine Engineering Service Company (SES). Upon Chan’s request, Ma sought Yeung’s assistance in providing him with the quotations of KPW.
Chan and Ma told Yeung, Lam Kwai-lung and Yau that their quotations were not for genuine bidding of the works but only for fulfilling the requirement of the IO. The trio agreed to offer assistance.
On September 17, 2015, Chan handed over the false quotations to Stella Lam, who subsequently prepared and signed the minutes of the IO meeting falsely representing that the IO had resolved to award the works to SWE after discussing the quotations of five bidders, namely SWE, KPW, O&H, HHE and SES, the court was told.
Chan, 34, and Ma, 31, were also charged by the ICAC for their roles in the scam in a separate case. They earlier pleaded guilty to a joint charge of conspiracy to use false instruments, and had their case adjourned to January 19 this year for sentence.
The IO of Fuk Hong Industrial Building had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Marco Li, assisted by ICAC officer Stephen Leung.