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Cliff Buddle

Disgraced tycoon George Tan Soon-gin began a three-year jail term yesterday as a judge branded him a greedy coward who had damaged Hong Kong's reputation.

  But the former Carrian boss will not pay a cent towards the $210 million cost of putting him behind bars.

  Mr Justice Michael Stuart-Moore decided not to interfere with a deal which allowed the swindler to avoid paying for the territory's most expensive prosecution.

  This would jeopardise future plea bargains because sides would fear the judge might break the agreement, he said, adding that he thought it was sensible of the prosecution to accept a compromise which saved the further cost of a long trial.

  The judge's comments were in contrast to those he made on Monday, when he said the case 'stood out a mile' as one in which costs should be ordered.

  Tan, 62, is barred from being a company director for five years, but no criminal bankruptcy order was made. Civil proceedings are pending.

  He has already spent six months in custody and is likely to be released in early 1998, if he does not succumb to his heart condition. He waved and smiled as he shuffled off to the cells.

  Mr Justice Stuart-Moore said Tan could have pleaded guilty many years ago but may have 'simply lacked the courage'.

  'It may even be that you had begun to see yourself as above and beyond the rule of law,' he told Tan.

 Tan admitted conspiracy to defraud involving US$238 million in secret loans obtained by the Carrian property empire from Malaysian Bank Bumiputra.

  Mr Justice Stuart-Moore told him: 'There is no doubt you were blessed with considerable business expertise. But your skills and perhaps also your greed have led you from a decent useful life to dishonesty on a grand scale.'   This brought disgrace to Tan and almost constant anxiety to his family, he said.

  Misguided people might think Tan deserved admiration for swindling banks on such a huge scale, the judge said. 'Let them reflect upon the damage done by you and your kind to Hong Kong's reputation for business efficiency combined with integrity. The hard work and honesty of the vast majority is tarnished by the downright dishonesty of a small minority of people like you.'    Tan had to be sentenced in accordance with the 'woefully inadequate' laws which existed at the time his crimes were committed.

  The judge said the fraud deserved the maximum seven years - increased to 14 in 1986 - but he reduced the sentence because of the long delays, Tan's poor health and his guilty plea.



'Greedy' Tan begins jail term