Integrity Focus

The director of a former subcontractor of the Water Supplies Department (WSD) and three of his employees were charged by the ICAC yesterday (May 29) with conspiracy to defraud by submitting reservoir inspection reports allegedly containing false information to induce the WSD to release service payments totalling about $4.6 million to his company.

Lau Ho-kei, 43, sole director-cum-shareholder of Helpful Engineering Company Limited (Helpful Engineering); Li Wing-to, 32, clerk of Helpful Engineering; and Kwok Ka-hay, 39, handyman of Helpful Engineering; jointly face one count of conspiracy to defraud, contrary to Common Law. Kwok Ka-kei, 39, elder brother of Kwok Ka-hay, alone faces one count of conspiracy to defraud.

The defendants were released on ICAC bail, pending their appearance at the Sha Tin Magistrates’ Courts tomorrow (May 31) for mention. The prosecution will later apply to transfer the case to the District Court for plea.

The offence took place between July 2020 and June 2022. At the material time, the WSD awarded two term contracts to Ming Hing Waterworks Engineering Company Limited (Ming Hing) for providing various waterworks services for the New Territories East District. Helpful Engineering was subcontracted to conduct inspection at around 40 reservoirs in the district to maintain safety and conditions of the reservoirs.

The WSD required its subcontractors to assign designated number of teams consisting of three members each to conduct daily inspection. Subcontractors were also required to compile a daily inspection report supported by real-time photographs of waterworks facilities taken during the inspection.

Lau, Li and Kwok Ka-hay allegedly conspired together with other employees of Helpful Engineering to defraud the WSD and Ming Hing by falsely representing that the inspections were duly conducted pursuant to the requirements of the WSD and induced the WSD to release service payments totalling about $2.4 million to Helpful Engineering.

Kwok Ka-kei also allegedly conspired with Lau to make similar false representations to defraud the WSD and Ming Hing, inducing the WSD to release service payments totalling about $2.2 million to Helpful Engineering.

The ICAC investigation arose from a corruption complaint. Enquiries revealed that the date and time of the photographs picturing waterworks facilities had been altered, making false representations that the inspection teams concerned had conducted inspections at the facilities on different days and that each inspection was conducted by three members.

The WSD and Ming Hing have rendered full assistance to the ICAC during its investigation into the case.