Integrity Focus

Two third-tier subcontractors of the construction projects of the Hong Kong Children’s Hospital and a private residential estate were earlier jailed for 15 months and 27 months after ICAC’s corruption probe revealed that they had defrauded two second-tier subcontractors of wage payments by overstating daily wages of plumbers. The District Court today (August 30) ordered to confiscate crime proceeds of over $570,000 from one of the defendants.

On July 27 this year, 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. He was sentenced to 27 months’ imprisonment and the relevant confiscation hearing was scheduled for today.

Judge Mr Ernest Lin Kam-hung today approved the prosecution’s application and ordered to confiscate crime proceeds of over $570,000 from Sze, who is required to satisfy the confiscation order within six months, failing which he is to serve a term of 19 months in default.

An ICAC spokesperson notes that the Commission has established a dedicated unit in 2010 to deal with 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 crime connected with bribery and related offences.

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 Assistant Director of Public Prosecutions Betty Fu, assisted by ICAC officer Keith Kwok.