A Highways Department officer and a subcontractor, charged by the ICAC, were today convicted at District Court of fraud over the replacement of damaged asbestos wall panels in the Aberdeen Tunnel.

Department Works Supervisor Chan Wing-wai, 34, and Tang Tak, 51, proprietor of Tak Lee Company, were found guilty of one count of conspiracy to defraud the department and three of fraud.

The court adjourned the case until tomorrow for sentence, and remanded the defendants in custody.

The case arose from a complaint alleging that some department staff had corruptly connived the replacement of non-compliant asbestos wall panels. ICAC enquiries uncovered the conspiracy and fraud offences which occurred between December 1997 and December 2000.

Tak Lee was subcontracted to replace damaged panels with asbestos-free Cemboard.

Chan, who was then responsible for supervising the project, and Tang had conspired with others to defraud the department by falsely representing that the replacement of panels had been satisfactorily completed.

Chan and Tang had deceived the department into making payments for such replacement works.

The court heard Tang falsely represented to the department that asbestos panels in the tunnel had been duly replaced with Cemboard panels as required.

Subsequently, Tang induced the department to certify completion of such works and arrange payment.

The court also heard that Chan had made false claims for overtime allowances totalling about $25,000 between July 1999 and February 2000.