Two consultants have been convicted of defrauding the Drainage Services Department by dishonestly causing it to charge various restaurants $740,000 less in trade effluent surcharges.

The pair are Artal (China)'s 44-year-old manageress Li Shuk-han and 41-year-old supervisor Fung Man-hing. Li was also found guilty of one count of conspiracy to defraud the Environmental Protection Department by submitting false laboratory reports.

The District Court today adjourned sentencing to February 25 pending community service order reports. Li and Fung were granted bail of $20,000 and $5,000.

Artal is a consultancy company providing grease trap cleaning to its client restaurants and takes care of their appeal applications on reducing trade effluent surcharges. It first charged its clients at an agreed rate, which was lower than the standard surcharge rate, then filed an appeal application with drainage authorities for a reduced rate and earned profits from the difference.

The defendants dishonestly arranged unreported grease trap cleaning for clients and falsely represented the dates. They also submitted false data leading to smaller surcharges. They conspired with other people to defraud from January 1 to December 31, 2005.

Li was also found to have conspired with another person to defraud environment authorities between October 1 and December 31, 2005, by submitting false laboratory reports on wastewater discharge at client restaurants.