Property officer and contractors charged by ICAC for fraud over $1m private estate maintenance works

Following an intensive investigation into a corruption complaint in relation to building maintenance works of a private residential estate in Shau Kei Wan, a property officer of a property management company and two renovation contractors were charged by the ICAC yesterday (14 October) for allegedly securing various minor works of the estate worth totalling $1 million by fraudulent means, including concealing conflicting interest and submitting false quotations.

Lui Kien-fat, 71, former property officer of Kong Shum Union Property Management Company Limited (Kong Shum, now renamed as Kong Shum Smart Management Services Limited (Kong Shum Smart Management Services), faces two counts of fraud, contrary to section 16A of the Theft Ordinance.

Mo Man-kai, 68, proprietor of Tai Tung Drainage Water and Electrical Works (Tai Tung); and Wan Man-tin, 68, sole director-cum-shareholder of Golden Way Engineering (China) Limited (Golden Way), each faces one count of fraud.

The trio were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts tomorrow (October 16) for plea in three separate cases.

At the material time, Kong Shum provided property management services to Sun Sing Centre, a private residential estate in Shau Kei Wan. Lui was originally employed by Kong Shum and posted to Sun Sing Centre to assist its Incorporated Owners (IO) in handling procurement matters and overseeing contractors. Kong Shum required its employees to declare conflict of interest in relation to contractors. In early 2023, Lui was directly employed by Sun Sing Centre’s IO as administrative officer.

The first case took place between November 2017 and May 2023. Lui had allegedly concealed from the IO of Sun Sing Centre that he was the significant controller of New Century (EMC) Limited (New Century), and with intent to defraud, induced the IO to pay service fees totalling over $290,000 to New Century for installation of an energy-efficient lighting system.

Lui had also allegedly concealed from Sun Sing Centre’s IO that he had financial interests in Kwan Kee Engineering Co. (Kwan Kee) to deceive the IO into settling works payments totalling about $380,000 to Kwan Kee for 27 minor maintenance works.

ICAC enquiries revealed that New Century and Kwan Kee, both set up by Lui, were directly or indirectly controlled by Lui at the material time.

The two other cases also took place when Lui served as property officer and administrative officer of Sun Sing Centre. At the material time, the IO of Sun Sing Centre invited quotations for various works. While three quotations were required for each works project, the relevant quotations were obtained and submitted by Lui to the IO.

Between August 2017 and May 2023, Mo, proprietor of Tai Tung, had allegedly made false representations to Sun Sing Centre’s IO that two other engineering companies had issued quotations in relation to 16 maintenance works to induce the IO to award the maintenance works to Tai Tung and settle works payments of over $260,000.

Between March and August 2023, Wan, director of Golden Way, had allegedly falsely represented to Sun Sing Centre’s IO that two other engineering companies had issued quotations in relation to a periodic inspection for fixed electrical installations to induce the IO to award the contract to Golden Way and make a payment of about $70,000 to Golden Way.

ICAC enquiries revealed that the four engineering companies concerned did not exist or had not submitted any quotations in relation to the works.

The ICAC is committed to upholding the highest integrity standards in the property management industry and continues to provide diverse integrity training to enhance practitioners’ anti-corruption knowledge and strengthen their capacity to mitigate corruption risks. The Commission has previously partnered with government departments, regulatory bodies, and professional bodies to host the first “Building Management Summit”, engaging the property management industry and other stakeholders to sustain professional support in fostering safe and comfortable living environments for the public.

IO of Sun Sing Centre and Kong Shum Smart Management Services rendered full assistance to the ICAC during its investigation into the case.