Businessman denies arson

FIRE struck a trading company's warehouse two months after ginseng tea and bird's nest products stored there had been insured for $500,000, the District Court was told.

Businessman Law Ip-chiu, 35, on trial before Judge Chua, has denied a charge of arson.

Prosecutor Liza Remedios said in her opening address that the Government Chemist had concluded that the fire was the result of a deliberate act.

The court heard that the Wing Yeung Trading Company was established by three partners - one of whom was Law, who ran it.

On July 8 last year, Law rented premises in Wing Yiu Street, Kowloon, to store the goods.

A $500,000 policy was taken out with Tai Ping Insurance Company at Law's suggestion to cover the merchandise.