Rent for Mak's flat met with approval
Court hears Rating and Valuation Department gave nod to rate for flat leased from ex-minister
The monthly rent of a flat at the centre of a fraud case involving former development minister Mak Chai-kwong and assistant highways director Tsang King-man was approved by the Rating and Valuation Department, a court heard yesterday.
Principal assistant secretary of the Civil Service Bureau Lui Kin-fun told the District Court that the monthly rent of HK$10,000, which was paid by Tsang's younger sister Tsang Wai-wah, who was then an engineer with the Drainage Services Department, for flat 21E at City Garden in North Point from December 1989 to August 1990, was approved by the Rating and Valuation Department.
He said the department conducted regular rental studies in different districts and used the data to assess whether monthly rents stated in the housing allowance claims were reasonable.
The prosecution earlier said the rent was below market rates.
Mak, 62, and Tsang, 57, are accused of conspiracy to defraud the government of HK$700,000 by "cross-leasing" their homes in 1986. Mak also faces two counts, and Tsang three counts, of using documents with intent to deceive the government.
The flat was bought by Mak and his wife in 1985 and then leased to Tsang, the court heard.
