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SCMP Reporter

A Hong Kong Standard executive told the ICAC that media tycoon Sally Aw Sian had agreed to create false circulation figures for the paper to attract more advertising, a court heard yesterday.

 General manager Henrietta So Shuk-wa, accused of plotting to defraud advertisers, admitted making the suggestion to set up a company to 'absorb the overprint newspapers', the District Court was told.

 The alleged admission was made in interviews with the Independent Commission Against Corruption recorded on video, part of which was played in open court.

 So, 35, has denied a charge of plotting the fraud with finance manager Tang Cheong-shing, 49, and former circulation director David Wong Wai-shing, 45. Tang and Wong also deny the charge.

 Ms Aw, the Sing Tao Holdings chairwoman, was named as a co-conspirator, but she is not being prosecuted.

 Gary Plowman, representing So, had argued that the three statements made by her on June 4 last year, and recorded on video, should not be allowed to be used in evidence.

 Judge Peter Line heard that a meeting was held between Ms Aw, Hong Kong Standard director Lawrence Wong Yu-kai and So either at the end of 1993 or early in 1994.

 In the video, So admitted it was she who suggested to Ms Aw that a company be set up to purchase newspapers from the Hong Kong Standard to 'make false circulation figures'.

 So admitted that she, Tang and David Wong had formed the 'initial idea', the court heard.

 'After discussion, we thought that by using such a company to absorb the circulation, it would make publication figures higher,' she said.

 'After we concluded the meeting, we decided to do that. We had to report to Ms Aw.'  So said Ms Aw agreed to their proposal and the arrangements were then made, the court heard.

 'If the circulation figures are higher, the readers and the advertising clients will have greater confidence. They may consider placing advertisements or to place more advertisements,' So said. But she admitted that when 'things were done', advertising income did not increase.

 Ms Aw bought a company called Mornstar to buy the excess Hong Kong Standard and Sunday Standard copies which were later disposed of as waste paper, prosecutor Michael Lunn SC had said earlier.

 There were three distributors used for the same purpose, but the prosecution said that Ms Aw was not involved in this part of the operation.

 False documents were created to cover up the plot and the records submitted to auditors to certify circulation figures, it is alleged.

 So and Tang have also denied six charges of false accounting while David Wong has denied four. The trial continues on Monday.



Sally Aw backed scam: ICAC video