A Senior Police Constable has admitted accepting unauthorised loans totalling $50,000 from his loan-shark friend, and pleaded guilty to three counts of prescribed officer accepting an advantage.

Eric Chan, 43, who was attached to the Enforcement & Control Division of Traffic Kowloon West Headquarters, appeared in Shatin Magistracy today after the Independent Commission Against Corruption had charged him.

Co-defendant Siu Suk-yee, 39, who lent money to Chan, admitted two counts of lending a total of $47,000 at an effective rate of interest exceeding 60% a year.

Between August 31 and September 28, 2006, Chan had taken out three loans from Siu totalling $50,000 - without the Chief Executive's general or special permission.

On Siu's request, Chan signed an "IOU", undertaking to make 18 monthly repayments.

Interest rates top 120% 

According to the agreed terms, the annual interest rate for the first loan of $2,000 was 123.46%, while the interest rate for another loan of $45,000 was 135.16%.

The court heard that as at December 2006, Chan had not fully repaid the loans to Siu.

Magistrate Li Wai-chi adjourned the case until June 10 for sentence, pending probation and community service order reports. Chan was granted cash bail of $3,000, while Siu was remanded in the Correctional Services Department's custody.

Chan was also charged today with two counts of conspiracy to pervert the course of public justice in a separate case, which arose from the same corruption investigation. He will appear in Kowloon City Magistracy on Thursday and has been released on ICAC bail.