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SCMP Reporter

Two employees of a construction company were behind bars yesterday after being convicted of deceiving the Housing Department by supplying false documents over the use of substandard steel bars in a Tung Chung building project.

Hundreds of tonnes of reinforced steel bars that failed laboratory tests were discovered to have been installed in the four blocks of Yat Tung Court, Tung Chung. The project cost a total of $761 million.

The construction manager of Cheung Kee Fung Cheun Construction Co, Chow Che-wai, was found guilty in the District Court yesterday of two charges of conspiracy to defraud. Quality control engineer Chan Fung previously pleaded guilty to the same charges before Deputy Judge Peter White.

The offences took place between January and March 1999.

Co-accused Christine Fung Tin-tai, director of the construction company and daughter of the company's managing director, Fung Cheung, was acquitted of three fraud charges.

Prosecutor Nicholas Adam had told the court the construction company was supplied with reinforced steel bars by Strong Progress Ltd and Long & Wide Development Ltd.

But a Housing Department-appointed laboratory carried out tests on the samples taken from batches of steel bars and found the samples did not comply with the agreed specifications in terms of stress and density.

The prosecution said Chow and Chan conspired to defraud the Housing Department by dishonestly submitting false and misleading documents, including receipts, weighing dockets and photographs, purportedly showing that the substandard bars had been removed from the blocks.

Chow and Chan were remanded in custody pending sentence.



Steel scam pair guilty of cover-up