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Thomas Chan

Former development minister Mak Chai-kwong and former assistant highways director Tsang King-man have failed to clear their names on appeal, after their convictions last year for a scam that granted them housing allowances as civil servants.
The pair defrauded the government of HK$700,000 in rental claims between June 8, 1985, and December 31, 1990.
With yesterday's judgment, they remain subject to sentences of eight-month jail terms suspended for two years.
"We are satisfied that there was no miscarriage of justice," a three-judge panel, sitting in the Court of Appeal, wrote in its ruling. "We dismiss the appeals."
Mak and Tsang are allowed to file another appeal in 28 days. They will meet barrister John Reading SC next week to study the judgment and decide whether to pursue the case further, their solicitor, David Hui Tin-fook, said outside court.
The pair did not turn up in court to collect the written judgment.
Mak earned the dubious description of "minister with the shortest lifespan" after his hasty resignation from Chief Executive Leung Chun-ying's administration over the scam just 12 days into his appointment to the Development Bureau in 2012.
At their trial last year, the District Court heard Mak and Tsang each bought a flat in City Garden, North Point, under their wives' names in 1985. They leased the homes to each other and applied for allowances under the government's private tenancy scheme.
Judge Johnny Chan Jong-herng convicted the two men in August last year on one count each of conspiracy to defraud.
In the ruling yesterday, Court of Appeal Vice-President Mr Justice Michael Lunn, Mr Justice Ian McWalters and Mr Justice Derek Pang Wai-cheong upheld the lower court's conviction and sentencing.
The High Court judges said they were satisfied that the "inevitable consequence" of their cross-leasing arrangement was that each enjoyed a beneficial interest, and therefore a financial interest, in the flat registered in the name of the other person and his wife.
Outside court, Hui said Chan's ruling might be "unsafe and unsatisfactory" as it contained material "erroneous findings" that the three High Court judges had pointed out.
The judges had found Chan was wrong to rule that the pair provided purchase money for the flat registered in the name of the other man and his wife.
But they said the "erroneous determination" did not lead to a wrong verdict of guilty.
Hui said: "All criminal prosecutions have to be proven beyond reasonable doubt, but now the trial judge's ruling contains material errors."
At the appeal hearing last month, Reading said Chan erred in ruling that the pair had a beneficial interest in flats they claimed to be renting. He also said the trial judge was wrong to accuse them of lying as they had had to recall very old transactions.
"The judge was not entitled to draw the inference as there is no direct evidence for it," Reading said at the time.
Mak fell from grace after Chinese-language newspaper Apple Daily revealed in July 2012 that he had abused a civil-service housing allowance scheme in the 1980s by "cross-leasing" properties with a colleague, who was later named as Tsang.
The scandal, uncovered just days after Leung took the helm, was widely seen as a blow to the new leader's administration. Paul Chan Mo-po was appointed to replace Mak as secretary for development.
Mak once publicly expressed regret for implicating Tsang.
"I am very sorry for involving Mr Tsang in this particular case," Mak said. "Mr Tsang was my good friend, and he continues to be my good friend. I think we will be friends for life."
 


Rent fraud pair fail in legal bid to clear names

Mak Chai-kwong (left) and Tsang King-man lost the appeal.

Mak Chai-Kwong arriving to the High Court last month. Photo: May Tse

News

Hong Kong

Judges dismiss appeal of Mak Chai-kwong and Tsang King-man in HK$70,000 scam, ruling there was no miscarriage of justice at trial


Former development minister Mak Chai-kwong and former assistant highways director Tsang King-man have failed to clear their names on appeal, after their convictions last year for a scam that granted them housing allowances as civil servants.


Rent fraud pair fail in legal bid to clear names

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Judges dismiss appeal of Mak Chai-kwong and Tsang King-man in HK$70,000 scam, ruling there was no miscarriage of justice at trial

Judges dismiss appeal of Mak Chai-kwong and Tsang King-man in HK$70,000 scam, ruling there was no miscarriage of justice at trial