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30 August 2001
News Stories:August Headlines

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1. Two Jailed for Piling Scam

2. Chun Wo Maps Out Its Future

1. Two Jailed for Piling Scam

Deputy Judge Ian Candy jailed senior engineer Li Wai-hang for three years and three months, and foreman Mak King-fai for two years and three months for their part in shortening piles for the Central Pumping Station. Judge Candy warned he would impose an immediate custodial sentence on anybody "from the top to the bottom" of a construction company found to be involved in short-piling fraud. He said the pair had full knowledge of the construction requirements at the site before they did any work. He found their conduct had shown a "complete lack of morals''. Prosecutor Wong Po-wing told the court that subcontract work at the Central Pumping Station and the Wan Chai East Pumping Station cost HK$86 million. Between May 1997 and February 1998, the defendants' company constructed 29 piles at the sites. Owing to deficiencies with excavation machinery and the tight construction schedule, the two and others decided to stop drilling once they hit any obstacles, such as boulders. Mak instructed his workers to cut steel cages at night for them to fit into the shortened pile holes. Tests revealed that a total of seven piles were between 3.6 and 10.7 metres shorter than designed.

[Source: HK-iMail, 30 August 2001]

2. Chun Wo Maps Out Its Future

Managing Director Clement Kwok told Chun Wo Holdings' annual general meeting on Wednesday that the company plans to diversify away from its traditional building construction business. As part of this plan it will submit a bid this week to construct the massive foundation works for the first stage of Hong Kong Disneyland. He said the Disneyland project included roadworks, landscaping and drainage worth about HK$3 billion. An overseas contractor, likely to be Maeda, would join Chun Wo as a joint-venture partner. Mr. Kwok said any reduction in the number of Home Ownership Scheme flats would not have a significant impact on the company since it is well diversified in a range of businesses including civil engineering, private housing and foundation works. A subsidiary of the group, Chun Wo Construction & Engineering, last month won a HK$137 million contract from the Water Supplies Department for site formation works and the construction of a service reservoir at Yam O Tuk on Lantau Island. The company also won the right to build the HK$1 billion Park-and-Ride project on top of the Choi Hung MTR station. Mr. Kwok said contracts on hand amounted to HK$10 billion, of which half are with the private sector.

[Source: HK-iMail, 30 August 2001]




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