Integrity Focus

Two third-tier subcontractors of the construction projects of the Hong Kong Children’s Hospital and a private residential estate in Ma On Shan were earlier charged by the ICAC as it was revealed in the course of a corruption probe that they had defrauded two second-tier subcontractors of wage payments by overstating daily wages of plumbers. One of the duo was earlier jailed upon conviction. Another defendant was today (July 27) sentenced to 27 months’ imprisonment following his guilty plea at the District Court.

Sze Kin-chung, 50, pleaded guilty to three counts of fraud, contrary to section 16A of the Theft Ordinance; and one count of conspiracy to defraud, contrary to Common Law. Four similar charges against him were left on file at the District Court.

In sentencing, Judge Mr Ernest Lin Kam-hung reprimanded Sze for his fraudulent acts which had deprived workers of their hard-earned rewards. The court had to mete out a deterrent custodial sentence as Sze committed the offences in an organised and continuous manner for a long time. The four offences warranted a total of 50 months’ imprisonment. Having considered Sze’s guilty plea and mitigating factors, including his leg injury, his jail term was reduced to 27 months.

The Judge also approved the prosecution’s application for a confiscation order and adjourned the relevant hearing to August 30.

The offences took place between November 2016 and September 2018. At the material time, Kin Win Engineering Limited (Kin Win) and Onplus Plumbing Engineering Limited (Onplus) took part in two construction projects respectively involving the Hong Kong Children’s Hospital and a private residential estate in Ma On Shan as second-tier subcontractors. Kin Win and Onplus subcontracted the plumbing work of the two projects to two third-tier subcontractors – Sze and Chu Cheuk-wah.

According to the subcontracting agreements, Sze and Chu were required to supply plumbers for the two projects and report the exact daily wages of the plumbers for wage calculation.

The court heard that Sze alone or together with Chu employed four plumbers. Their daily wages stated in their contracts were either $1,400 or $1,500. It was however agreed between the two defendants and the plumbers that their respective daily wages only ranged from $750 to $1,100. In addition, the two defendants had asked the plumbers to return the wage difference to them after receiving their monthly wages from Kin Win and Onplus.

The ICAC investigation arose from a corruption complaint. Enquiries revealed that wages of the four plumbers were overstated by over $660,000.

Co-defendant, Chu, 59, was sentenced to 15 months’ imprisonment at the District Court on January 18 this year upon conviction of two counts of conspiracy to defraud after trial.

The Hospital Authority, Kin Win and Onplus had rendered full assistance to the ICAC during its investigation into the case.

The prosecution was today represented by Senior Public Prosecutor Douglas Lau, assisted by ICAC officers Ruby Cheung and Cody Chung.