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Operations Department Review 2002 - 廉政公署

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piling contractor had chosen to conceal the substandard<br />

piles by replacing cored logs before testing and tampering<br />

with measurement tapes to fabricate records.<br />

Two directors and a site agent of a piling company<br />

were charged with conspiracy to defraud the Hong Kong<br />

Government. In July <strong>2002</strong>, the directors were convicted at<br />

the Court of First Instance and were sentenced to 12 years'<br />

imprisonment. The site agent, who pleaded guilty and testified<br />

against his co-accused, was given a jail term of three<br />

years and three months. In passing a deterrent sentence,<br />

the trial judge commented that:<br />

" Their conduct strikes at the very heart of the construction<br />

industry. The damage they did is enormous and<br />

it is also absolutely unthinkable that anyone would commit<br />

such a crime, creating such hazard to life and property, for<br />

a comparatively small gain. I would not be performing my<br />

duty if the sentence I give does not adequately reflect public<br />

disapproval and abhorrence for such kind of irresponsible<br />

and fraudulent conduct."<br />

Inflated claims<br />

A common corruption related fraud in the construction<br />

industry is the corrupt approval of inflated claims for<br />

interim payments. One such case involved a subcontractor<br />

responsible for maintenance of government buildings in<br />

Western Hong Kong and South Kowloon. He was<br />

convicted of bribing officers of the Architectural Services<br />

<strong>Department</strong> for lax supervision and was sentenced to ten<br />

months' imprisonment. Three of his employees were convicted<br />

of conspiring to defraud the Hong Kong<br />

Government by submitting inflated claims of several hundred<br />

thousand dollars for maintenance work. They were<br />

sentenced to terms of imprisonment ranging from six to 15<br />

months. In the same case, three officers of the<br />

Architectural Services <strong>Department</strong> were fined and ordered<br />

to perform community service after their conviction for<br />

accepting advantages.<br />

Corrupt award of contract<br />

The case, last reported in the 2001 <strong>Operations</strong><br />

<strong>Department</strong> <strong>Review</strong>, involving a Chief Building Services<br />

Engineer of the Housing <strong>Department</strong> has resulted in his<br />

being charged with one count of misconduct in public

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