AN eminent businessman plotted with a disgraced former director of the Ka Wah Bank to defraud his own company in a $127.6 million swindle, the High Court heard yesterday. Ch'ng Poh, 53, allegedly used money belonging to Intercontinental Housing Development Ltd (IHD) to buy a controlling interest of 77 million shares in the publicly listed company in August 1985. The shares were bought from the then owners, Victor Tan Khai-chong and Low Chang-hian, whose family controlled the Ka Wah Bank at the time, the court heard. Three years later Malaysian businessman Ch'ng, described as a ''clever and highly educated man'', wrote off the entire amount, it was claimed. Prosecutor Nigel Aiken, QC, said: ''The purchase price agreed was $232,514,000. The defendant simply was not able to raise such a massive amount of money so this agreement was reached which allowed the defendant to use IHD's own money to enable the payment of the balance of the purchase price. ''The scheme was well thought out and very clever.'' The jury heard the businessmen circulated three cashier's orders and 16 cheques through accounts in the Ka Wah Bank on August 17, 1985, to conceal the illegal transaction. Mr Aiken said: ''In less than 15 minutes, $127,617,747.88 was moved around bank accounts making a circle. That money was IHD's money. ''It was never repaid. IHD never got it back, and a number of years later in 1988 when Ch'ng Poh was in charge of IHD and was the major shareholder he arranged for the whole amount to be written off plus interest.'' Ch'ng is also accused of publishing a false report to IHD shareholders in December 1985 which failed to state $127.6 million had been withdrawn from the company's bank account. Low, who has convictions in Hong Kong and Singapore for dishonesty, has been given immunity from any further prosecutions in relation to Ka Wah's affairs and is expected to give evidence for the prosecution. Tan is believed to be in Taiwan. Liberal Party Legislative Councillor Ngai Shiu-kit, 69, has also been granted immunity from prosecution to testify for the prosecution. Ch'ng denies conspiring with Low, Tan and others to defraud IHD Ltd and a further count of publishing a false statement. The trial, in front of Mr Justice Keith, continues today.