Lily Chiang was on leave at time of alleged offences, court hears

High-profile businesswoman Lily Chiang Lai-lei was on sick and maternity leave after losing an unborn twin during the period of her alleged fraud offences, a court heard yesterday.

Former General Chamber of Commerce chairwoman Chiang, 50, is on trial in the District Court with two co-defendants on five charges of fraud and making false statements. Two of the charges are alternative.

Prosecutors alleged Chiang had instructed her employees to hold shares for her and concealed her beneficial interests from shareholders, the Securities and Futures Commission and the Hong Kong Stock Exchange. The alleged offences took place between January and December 2001, and between February and August 2002.

Around September 2001, Chiang found she was pregnant with twins, but she discovered the following month that one of them did not have a heartbeat, the court heard. Choking back tears, she said: 'The doctor told me to relax and not to get stressed as it could affect the survival of the other twin.'

She rarely worked from December 2001 to the end of her maternity leave in July 2002, apart from attending an investors' presentation for Eco-Tek - a company that she set up.

The prosecution alleged that after Kandy Profits took over Chiang's other company, Pacific Challenge, in August 2002, Chiang had instructed her assistant Yip Yuk-chun to collect cheques from the proceeds of surrendered shares that were held by Chiang's five employees.