Prosecution fails to show defendants knew their behaviour was dishonest
Seven former Housing Authority sub-contractors were acquitted yesterday of forming a cartel to rig tenders for contracts worth $115 million for the supply of gates.
A judge found the defendants had indeed formed a cartel, and said they had engaged in shrewd and sharp business practices. But the prosecution had not proved they knew their behaviour was dishonest, said District Court Judge Alan Wright.
The court heard the defendants had received legal advice the cartel did not break any laws.
The defendants had denied a joint charge of conspiring to defraud the authority of $55 million, between April 1997 and September 2000, by dishonestly submitting bids to supply steel gates for 16 developments. The prosecution alleged the sum represented excess profits made on the contracts.
Judge Wright ruled there was insufficient evidence that the sub-contractors' cartel engaged in price-fixing.
The seven accused were: William Chan Cheu-hung, 57, and Wong Chun-hay, 51, respectively director and manager of Dynamic Mark; Yu Chuen-wing, 55, director of Hip Tat Engineering; Hui Shun-tang, 47, director of Tien Shan Engineering; Law Chung-for, 41, director of Sheen Harvest Industries; Sit Kam-tai, 54, director of Shing Shun Engineering Factory; and Billy Tsoi Kai-chung, director of Outstanding Engineering.