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 From Hong Kong's Information Services Department
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October 22, 2007
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Courts
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Subcontractor jailed for graft
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ICAC

A subcontractor has been jailed nine months for conspiracy to offer $120,000 in bribes to a contractor's employee in relation to a Civil Engineering & Development Department landslip prevention project.

 

Fuk Shing Engineering Company proprietor Lai Kam-fuk, 54, pleaded guilty to one count of conspiracy to offer advantages to an agent.

 

Sha Tin Magistracy heard that in June 2004 the department awarded a $74 million contract to Barbican Construction Company. Barbican then subcontracted various parts of the works to other companies.

 

Edmund Lau, then an assistant project manager of Barbican, was responsible for short-listing subcontractors, supervising their works and making recommendation for the payment of project fees. In September 2004 the defendant, upon the solicitation of Lau, agreed to offer to him 5% or $200,000 of the profits to be generated from a subcontract. In return Lau helped him prepare a favourable tender to Barbican, obtaining the subcontract from it and expediting future claims for payment.

 

In November 2004 Barbican accepted a tender from Fuk Shing and entered into a subcontract with Fuk Shing with an estimated project sum of $44 million. Between September 2004 and January 2006 the defendant paid bribes totalling $123,000 to Lau. Since February 2006 the defendant has ceased to pay bribes to Lau as Fuk Shing was in financial difficulty.

 

At no time did Barbican allow its employees to solicit or accept any advantage in relation to the company's business, the court was told.

 

Lau has been charged by the Independent Commission Against Corruption for his alleged role in a separate case which is scheduled for verdict at the District Court October 24.