A publisher blew the whistle on an alleged fraud plot said to involve a prominent writer after reading what he felt was a hypocritical article by him, a court heard yesterday. Wong Kai, the head of printing firm Editions Quaille Ltd, yesterday admitted one charge of conspiracy to defraud, and received a three-month jail term, suspended for 12 months. He denied three further charges of false accounting, which will be left on file. Writer Woo Chih-wai denied four charges relating to the alleged grants fraud against the Hong Kong Arts Development Council. Wong's lawyer, Eric Chan, said: 'The defendant read a newspaper article in June 1998 which was written by Woo. In that essay, the writer had accused other editors of not paying the printing cost of their journal. He had also accused them of profiting from their grant. 'The defendant was angry because Woo was doing the same thing. So he wrote a letter to the [council], and the council revealed it to the ICAC.' Independent Commission Against Corruption assistant inspector Jennifer Tam Wai-lin told Magistrate John Brennan that Wong did not benefit from the alleged fraud. He only helped Woo exaggerate the production costs of Hong Kong Literature, a council-funded publication printed by Wong's company, the court heard. Woo is on the board that oversees the council's finances, and stood down from another post as head of the council's Literary Arts Committee when he was arrested in January. Ms Tam has alleged Wong's company had printed 12,000 issues of the journal and the actual printing cost was $186,500. But Woo allegedly told the committee that 20,000 issues were published at a cost of $289,109. Woo pleaded not guilty to one count of conspiracy to defraud and three counts of furnishing false information. The offences were said to have been committed between January 1995 and June 1996. He is to reappear in Eastern Court on October 6.