Police arrest bosses of coronavirus mask maker on suspicion of swindling Hong Kong government out of HK$9.12 million in subsidies

Name: One creative mask a day: Hong Kong theatre costume designer documents life during the pandemic
Uploaded: 2020-12-18T15:07:24.000Z
Duration: 5 min 22 s
Description: One creative mask a day: Hong Kong theatre costume designer documents life during the pandemic

Three women and two men, aged 28 to 51, detained over conspiracy to defraud government in connection with a subsidy scheme

They are accused of using forged receipts to inflate prices of raw materials, resulting in officials paying more than production cost

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Under the HK$1.5 billion subsidy scheme, manufacturers setting up a production line capable of delivering at least 500,000 masks a month are given up to HK$3 million. Photo: Shutterstock

Cannix Yau

Published: 11:07pm, 18 Dec 2020Updated: 1:28am, 19 Dec 2020

Five directors of a coronavirus mask manufacturing firm in Hong Kong have been arrested for allegedly duping the government out of HK$9.12 million (US$1.18 million) provided through a subsidy scheme by inflating the production costs of the protective gear.

Police said on Friday night three women and two men, aged between 28 and 51, were detained on suspicion of conspiracy to defraud the government.

Chief Inspector Tang Hoi-tung of the financial investigation arm of the Narcotics Bureau identified the suspects as directors of a mask production firm that was approved under the scheme to provide 2 million masks a month to the government at production cost.

Under the contract, the firm also needed to produce another 1 million masks every month for the local market.

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One creative mask a day: Hong Kong theatre costume designer documents life during the pandemic

Hong Kong’s government launched the local mask production subsidy scheme in March to combat an increasingly acute shortage of masks in the city as the coronavirus outbreak spread worldwide.

Since then, the firm has delivered 10 million masks to the government. It was paid HK$9.12 million for 4 million pieces – at an average cost of HK$2.28 each.