Subcontractor in Kai Tak Sports Park bribery case gets 10 months’ jail for falsifying accounts to evade tax and ordered to make $14.6m compensation

A subcontractor of Kai Tak Sports Park construction project was sentenced to 10 months’ imprisonment at the District Court today (October 6) after a bribery investigation by the ICAC revealed that he had conspired with a businessman to falsify accounts to evade taxes of over $14.6 million. In addition, a compensation order was made against the subcontractor. While an employee of the main contractor, who pleaded guilty to accepting $1 million in bribe, passed away following an illness before sentencing, the court disposed of the bribe in this case and did not impose a sentence on him.

Yiu Shu-wan, 63, director and shareholder of Lee Shing Masonry Engineering Limited (Lee Shing); was jailed for 10 months. He was also ordered by the court to pay over $14.6 million, equivalent to the amount the Inland Revenue Department (IRD) charged Lee Shing less in profits tax, as compensation to the government.

Co-defendant Yiu Shun-chuen, 64, proprietor of Shun Fat Trading Company (Shun Fat), was sentenced to five months’ imprisonment, suspended for two years.

The duo were found guilty after trial of one count of conspiracy to falsify accounts, contrary to section 19(1)(a) of the Theft Ordinance and section 159A of the Crimes Ordinance.

In sentencing, Deputy District Judge Ms Leung Ka-kie remarked that evading to pay tax intentionally was a serious offence. The conspiracy of falsifying accounts in the present case involved substantial sums of money over a period of three financial years. The court took a starting point of 15 months’ imprisonment for Yiu Shu-wan, who was the mastermind gaining from the scam. A 10 month’s jail term was imposed on him, taking into account his compensation made to the government and other mitigating factors.

Another co-defendant Ringo Ng Wo-nang, former senior manager of site services department of Hip Hing Construction Company Limited (Hip Hing), pleaded guilty in August 2024 to one count of agent accepting an advantage, contrary to section 9(1)(b) of the Prevention of Bribery Ordinance (POBO). While Ng died of an illness before sentencing, no sentence was imposed on him and the court made an order for the delivery of the $1 million bribe concerned to Hip Hing pursuant to section 102 of the Criminal Procedure Ordinance, in line with the spirit of the POBO in disposing of bribes.

The ICAC investigation stemmed from a corruption complaint. At the material time, Hip Hing was the main contractor of various public and private construction projects in Hong Kong, including the Two Taikoo Place and the Kai Tak Sports Park. Lee Shing obtained a masonry subcontract of the Two Taikoo Place Project worth about $60 million in 2020, and bid for two masonry subcontracts worth totalling over $250 million of the Sports Park Project in 2021.

Ng earlier admitted that he had accepted a bribe of $1 million in relation to the masonry subcontracts of the two construction projects. He was intercepted by ICAC officers after accepting $1 million in cash.

The court also heard that between July 2015 and November 2021, Lee Shing director Yiu Shu-wan and Shun Fat proprietor Yiu Shun-cheun had conspired together to falsify accounts of Lee Shing. By making over 80 sets of false accounting documents comprising purchase orders, invoices, delivery dockets and official receipts issued by Lee Shing or Shun Fat, the duo falsely represented that Lee Shing had purchased building materials from Shun Fat and a sum of over $88 million was regarded as operating cost of Lee Shing.

The ICAC investigation revealed that Shun Fat, which was a textile trading company, had never sold any building materials to Lee Shing. By falsifying accounts, the defendants had caused the IRD to charge Lee Shing over $14.6 million less in profits tax in three financial years between 2017 and 2020.

Hip Hing rendered full assistance to the ICAC during its investigation into the case.

The prosecution was today represented by prosecuting counsel Eddie Sean and Vienna Fong and Public Prosecutor Matthew Hui, assisted by ICAC officer Wily Chan.