Wan Chai district councillor Kennedy Lee Kai-hung has been convicted of fraud, jailed for five months and ordered to repay the government HK$19,149 which he pocketed after overstating office operating costs.
Passing sentence yesterday, District Court Deputy Judge Li Wai-chi said the offence was particularly serious as Lee was a holder of public office who, out of greed, used his position to defraud the government.
Lee, 48, elected to the council in 2007, pleaded not guilty last week to seven charges of fraud and another one of misconduct in a public office.
He had instructed his lawyer Wong Ching-yu, SC, to apply for a permanent stay of prosecution, alleging that the case against him constituted an abuse of process because the Independent Commission Against Corruption had no authority to prosecute him for alleged offences which did not involve corruption.
But Judge Li refused to grant a stay on Monday, saying that he found the case against the defendant involved no prejudice.
That same day, Lee reversed his plea and admitted five charges that he fraudulently claimed operating expenses from the council secretariat by inflating his assistants' salaries.
Lee, who was a district manager for American International Assurance, also admitted misconduct, which involved detailing his council assistants to work on his insurance business and prepare teaching materials unrelated to council work.
