Construction company Zen Pacific has agreed to pay the Housing Authority $80 million to compensate for defective piling works were found in a Home Ownership Scheme project in Sha Tin.
The scandal cost the authority about $600 million.
The authority said yesterday that any sums related to the project recovered by Zen Pacific from its sub-contractors or consultants would also be handed over.
The authority announced two days ago that the contractor had made a payment over the piling scam. But it did not reveal the amount of the settlement until yesterday.
Defective piling works were discovered at two 34-storey residential blocks at Yu Chui Court in early 2000. The blocks were later demolished, with the sale of the remaining flats delayed until new flats were built. The delay cost the authority about $600 million.
The authority had sought $200 million from the contractor but said last night that the $80 million was already 'in excess of the net asset worth of Zen'.
