Six on ICAC graft charges over Grand Field deal

DannyChung Six former and incumbent senior executives of listed property developer Grand Field Group Holdings (0115) and securities and commodities broker Upbest Group (0335) have been charged by the Independent Commission Against Corruption with alleged conspiracy to defraud shareholders and the stock exchange. The anti-corruption agency charged former chairman of Grand Field Group Holdings Wayland Tsang Wai-lun, former Grand Field executive director Nancy Kwok Wai-man, Upbest Group executive director Charles Cheng Kai- ming, Upbest executive director George Li Kwok-cheung, Upbest independent non-executive director David Wong Wai-kwong and former representative of Sino Richest Limited, Li Tai-pang. The six defendants will appear tomorrow at Eastern Magistracy on two counts of conspiracy to defraud, while Tsang faces a further count of conspiracy to publish a false statement. The ICAC said yesterday the charges stem from a corruption investigation and the alleged offenses were uncovered through inquiries. Charges relate to a May 2002 agreement under which Grand Field was to buy 75 percent interest in a company, Sino Richest, which had an 80 percent stake in a Sino-foreign joint venture engaged in developing a gas pipeline business in Chongqing. The consideration was HK$63 million compared with a fair market valuation of HK$106 million for the entire joint venture. Grand Field was to issue 315 million new shares to the sellers in return. Upbest, which is also engaged in money lending and financing, was the financial adviser for the acquisition of the joint venture. But in February 2003, Grand Field said the Chinese JV partner had failed to transfer ownership of assets according to the agreement. The first two counts relate to the alleged genuine interest of Grand Field to enter the gas pipeline business and the sale of its interest to another company later. Upbest issued a stock exchange statement last night saying the offenses related to a subsidiary and the company was not involved. It said its three directors "strenuously" deny the allegations. UBA Investments (0768), where Li Kwok-cheung and Wong Wai-kwong are directors, also issued a statement saying it was not involved.