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Account for missing files, justice department told

A judge has ordered the Department of Justice to reveal which prosecution documents relating to a fraud trial were deleted from its computers. The trial was adjourned last month because of the missing evidence.

District Court Judge Douglas Yau Tak-hong gave the order yesterday after a complaint from defence lawyers. They told him the department said some documents related to the case had 'gone missing', but would give no further explanation.

The fraud case involves allegations of misuse of letters of credit at Hong Kong-listed Yueshou Environmental Holdings.

The firm's former vice-chairwoman, Kelly Cheng Kit-yin, 57, her daughter Carmen Cheng Wei-ming, 37, and three company directors have been charged with 11 counts of conspiracy to defraud and two counts of dealing with the proceeds of an indictable offence.

The Department of Justice confirmed yesterday that it 'had recovered documents that appeared to have been removed from its computer system but is currently making a thorough check on this. The matter was referred by the department to police when this was discovered.'

The department also said its employees had assisted police in a probe on the missing documents on June 7.

At yesterday's court hearing, solicitor Jonathan Midgley, who represents Carmen Cheng and the third defendant, Ip Kin-man, said: 'The defendants are entitled to know the full picture behind the [missing documents].'

Midgley said a full disclosure was required in the interests of justice. 'It could only be tip of the iceberg. But what is beneath the water?' he asked.

'Not only our defendant should know the answer, the court would also like to know the answer.

'It is a serious matter and a serious investigation. It would be very naive for the Department of Justice to think that is the end of the story.'

Eric Kwok SC, Kelly Cheng's lawyer, said the defence had asked for documents that included the witness summons served on some bankers. But the Department of Justice told them that certain files had gone missing and could not be given to the defence.

Midgley said that without knowing what actually happened, he was unable to decide what further steps he should take for his clients' defence.

The Department of Justice is reported to have taken the initiative to inform police about the missing documents. For the department to do so was 'unusual' and 'a surprise', Midgley told the court.

The defendants are accused of making applications for letters of credit to five banks, including Bank of China.

Carmen Cheng and Ip are accused of laundering HK$28 million.

The case was adjourned until next Wednesday.

$33m

The amount of credit, in HK dollars, the defendants are charged with dishonestly applying for from banks from 2001 to 2002

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