Ex-manager jailed for $580,000 MTR Corporation design service payments fraud
2018-4-20
A former manager of the MTR Corporation Limited (MTR Corporation), charged by the ICAC, was today (April 20) sentenced to 18 months’ imprisonment at the Kwun Tong Magistracy for conspiracy to defraud the MTR Corporation of design service payments totalling over $580,000.
Lau Kwok-fai, 51, former manager of the MTR Corporation, earlier pleaded guilty to seven counts of conspiracy to defraud, contrary to Common Law.
In sentencing, Deputy Magistrate Andrew Mok Tze-chung said he meted out a jail term of 18 months to the defendant after taking into account his guilty plea and other mitigating factors.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that at the material time, the defendant was the manager of the Branding and Creative Design Team of the MTR Corporation, who had the authority to contract out design tasks to design contractors directly.
Between November 1, 2012 and April 3, 2014, the defendant and a design contractor of the MTR Corporation falsely represented that the contractor had provided design services for six projects and submitted 16 invoices issued by the contractor in respect of the design services it had provided. In fact, the contractor had not provided any design services for the six projects.
The six projects were the passenger information display system, pocket size safety booklet, priority lift signage for MTR stations, platform lift directional passage, platform queuing design for Kowloon Tong and Prince Edward Stations.
The defendant and the design contractor caused and induced staff members of the MTR Corporation to make payments to the contractor in the total sum of $309,000 for the design services.
The court heard that between December 1, 2014 and October 27, 2015, the defendant and the design contractor falsely represented that another contractor had provided design services for the digital route map screen display graphic of the Shatin to Central Link, and submitted four invoices issued by the second contractor in respect of the design services it had provided.
The defendant and the design contractor caused and induced staff members of the MTR Corporation to make a payment to the second contractor in the sum of over $273,000 for the design services, despite the fact that the second contractor had not provided any design services for the project.
The MTR Corporation had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by Senior Public Prosecutor Andrew Cheng Chi-hang, assisted by ICAC officer Giggs Poon.
Lau Kwok-fai, 51, former manager of the MTR Corporation, earlier pleaded guilty to seven counts of conspiracy to defraud, contrary to Common Law.
In sentencing, Deputy Magistrate Andrew Mok Tze-chung said he meted out a jail term of 18 months to the defendant after taking into account his guilty plea and other mitigating factors.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that at the material time, the defendant was the manager of the Branding and Creative Design Team of the MTR Corporation, who had the authority to contract out design tasks to design contractors directly.
Between November 1, 2012 and April 3, 2014, the defendant and a design contractor of the MTR Corporation falsely represented that the contractor had provided design services for six projects and submitted 16 invoices issued by the contractor in respect of the design services it had provided. In fact, the contractor had not provided any design services for the six projects.
The six projects were the passenger information display system, pocket size safety booklet, priority lift signage for MTR stations, platform lift directional passage, platform queuing design for Kowloon Tong and Prince Edward Stations.
The defendant and the design contractor caused and induced staff members of the MTR Corporation to make payments to the contractor in the total sum of $309,000 for the design services.
The court heard that between December 1, 2014 and October 27, 2015, the defendant and the design contractor falsely represented that another contractor had provided design services for the digital route map screen display graphic of the Shatin to Central Link, and submitted four invoices issued by the second contractor in respect of the design services it had provided.
The defendant and the design contractor caused and induced staff members of the MTR Corporation to make a payment to the second contractor in the sum of over $273,000 for the design services, despite the fact that the second contractor had not provided any design services for the project.
The MTR Corporation had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by Senior Public Prosecutor Andrew Cheng Chi-hang, assisted by ICAC officer Giggs Poon.