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January 06, 2016

Top Hong Kong court clears former officials in HK$700,000 flat-swap case after appeal

Convictions overturned for former development minister Mak Chai-kwong and assistant highways director Tsang King-man

CHRIS.LAU@SCMP.COM

PUBLISHED : Wednesday, 06 January, 2016, 12:31pm

UPDATED : Wednesday, 06 January, 2016, 3:11pm

Former development minister Mak Chai-kwong (left) and former assistant highways director Tsang King-man leaving the court. Photo: K.Y. Cheng

Former development minister Mak Chai-kwong and assistant highways director Tsang King-man earlier found guilty of defrauding the government out of HK$700,000 in housing allowances have had their names cleared at the city’s top court.

Mak, 62, was cleared of two counts and Tsang, 57, of three counts of using documents with intent to deceive the government at the Court of Final Appeal this morning. They were also cleared of one joint count of conspiracy to defraud the government.

The District Court earlier heard Mak and Tsang cross-leased the flats in City Garden, North Point, registered under their name to each other in the late 1980s. As civil servants, they claimed private tenancy allowance, a form of housing allowance.

READ MORE: Ex-officials convicted in housing scam win right to appeal in Hong Kong’s top court

Although cross-leasing was not illegal, the lower court heard earlier, it was illegal if they had business interest in the properties for which they claimed allowance.

District Court judge Johnny Chan Jong-herng found the pair were the beneficial owners of the flats they claimed to be renting because they had paid for the flats.

At the Court of Appeal earlier, judges ruled that the trial judge had erred in ruling so, but maintained the conviction.

On Wednesday, the top judges at the Court of Final Appeal asked senior counsel Peter Duncan, prosecuting, where the inference of the pair being beneficial owners could be drawn, since Judge Chan’s decision had been overturned.

“The inference has to be irresistible,” said Justice Roberto Ribeiro.

The judges came to their decision without having to hear the pair’s lawyer John Reading SC’s submission.

They quashed the pair’s conviction and awarded them legal costs with reason to be handed down later.

Outside court, Mak, accompanied by his wife, said: “We are very happy today that we can put aside this thing for the last three and a half years.”

When asked if he would join the government again, he said he was now teaching at the University of Hong Kong and would continue his tenure there.

http://m.scmp.com/news/hong-kong/law-crime/article/1898329/top-hong-kong-court-clears-former-officials-hk700000-flat