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1. Construction bosses jailed for soliciting $36m

2. Legco out to crack cultural hub secrets

1. Construction bosses jailed for soliciting $36m
PATSY MOY, SCMP 15 January 2005

A senior manager of publicly listed Wharf (Holdings) and a director of a private company had undermined fair competition, a high court judge said yesterday after the pair were convicted of soliciting more than $36 million from building contractors.

Warren Wong Kwok-wang, 48, chief manager of the project cost consulting department, was jailed for seven years and Edwin Tso Wai-cheung, 40, a director of a private company, was sentenced to six years' jail.

The jury found Wong and Tse guilty, respectively, of nine and five counts of conspiracy to solicit an advantage for an agent and conspiracy to accept an advantage for an agent. The offences took place between January 1, 1998, and December 11, 2002.

In passing the sentences, Mr Justice Louis Tong Po-sun said both defendants had "undermined a [tendering] system which is an important device for fair competition in the construction industry".

"I do not know how prevalent such a practice is in the sector, but Wong's action was a breach of trust towards his employer," Mr Justice Tong said.

Wong's defence counsel, Lawrence Lok SC, told the court his client had lost his $2 million provident fund, forfeited by his employer after the conviction.

It was the prosecution case that Wong and Tso had conspired to solicit a total of $24 million from Hip Hing Construction Company Limited and Gammon Skanska Limited for Wong to provide information about the tenders submitted by other contractors in relation to a Wharf construction project.

Wong also conspired to solicit $10 million from Chun Wo Construction & Engineering Company Limited in relation to the same project.

The defendants were also convicted of conspiring to accept sums from Hip Hing for Wong to give to the latter confidential tendering information on three other Wharf projects.

Wong was also found guilty of conspiring to accept money from Chun Wo and Ping Kee Furniture Company for helping the latter obtain construction and renovation projects from Wharf.

Before the pair were sentenced yesterday, comments were written in Chinese on a notice board outside the courtroom to express their grievances.

They read: "innocent", "innocent people have been framed" and "immunity witnesses have pocketed hundred of thousands of dollars".

2. Legco out to crack cultural hub secrets
CHLOE LAI and AMBROSE LEUNG, SCMP 15 January 2005

Legislators are planning to use special powers to force the government to reveal confidential information about the West Kowloon cultural district project.

Lawmakers from the pro-democracy camp want to use the powers to obtain financial details of the bids submitted by the three contenders for the project.

They also want the government to release related documents, such as financial studies for the project, operation plans for the cultural hub and internal discussion minutes.

The democrats' move has gained preliminary support from the Liberal Party, which would give it enough votes to be passed in Legco.

Under the Legislative Council (Powers and Privileges) Ordinance, any person can be compelled to testify in Legco or provide documents when the law is invoked by a vote in the legislature.

Failure to comply with the order is a criminal offence with a maximum fine of $10,000 and 12 months' imprisonment. The demand can be challenged by a judicial review.

Democratic Party chairman Lee Wing-tat said lawmakers had to take action because their voices were not being heard.

"A letter has been sent, a motion has been passed, but the government is still doing nothing to address public concerns. It seems to me that the government is treating Legco as if it were dead ... We have to continue our fight," he said.

The latest move follows the passage of a motion by Legco last week calling on the government to scrap its single-developer approach and to do away with the planned giant canopy when developing the 40-hectare site. A letter on the issue signed by 50 lawmakers was also sent to Chief Secretary Donald Tsang Yam-kuen last month.

The government has been criticised by lawmakers and small developers about its plan to award the entire project to one developer and for not disclosing tendering details.

But Mr Tsang remained defiant last night, insisting that the single-developer approach was crucial to the project.

He also said the offers put forward in the proposals must be kept confidential during negotiations between the government and the bidders, to avoid weakening the government's bargaining power.

Mr Tsang said the government would continue listening to the public during the consultation period, which ends in March.

All three shortlisted bidders - Dynamic Star International, a joint venture between Sun Hung Kai Properties and Cheung Kong (Holdings), Henderson Land, and a joint venture between Sino Land, Wharf (Holdings) and Chinese Estates - had agreed earlier to make their financial proposals public.

Mr Lee said that only by disclosing all information would the bidding process be made transparent.

Alan Leong Kah-kit, of the Article 45 Concern Group, said: "After the motion debate last week, it is clearer than clear that the community has formed a consensus on the project. Legco has the obligation to oversee the project right through."

But government ally the Democratic Alliance for Betterment of Hong Kong was hesitant last night about using the special powers.

Legislator Lau Kong-wah said the party would discuss the matter. "We think the government shouldn't restrict the public from choosing one among the three shortlisted contenders."