A former senior executive of the listed company, China Environmental Resources Group Limited (CERG), was charged by the Independent Commission Against Corruption (ICAC) on Thursday with conspiracy to offer advantages to a former chairman of the same company.

Choy Ping-fai, 48, was a former president of CERG, formerly known as Benefun International Holdings Limited.

According to the ICAC, Choy was suspected to have conspired with four others to offer Tan Sim-chew, former chairman of Benefun, a promissory note on Benefun to the value of HK$100 million, as well as offered a favor to purchase 626 million shares of Benefun from Tan, at a price of HK$80 million.

The transactions were said to have taken place between Jan 1, 2008 and May 14, 2010.

The conspirators, ICAC alleges, include 62-year-old merchant Lai Yiu-keung, 44-year-old company director Sik Siu-kwan, 49 year-old accountant Chang Kin-man, and 44-year-old accountant Ip Wing-lun.

The advantages were said to be a reward for Tan, to cause Benefun to acquire a plantation in Xinjiang Uyghur Autonomous Region for HK$500 million.

It was also a reward for Tan to arrange a change of Benefun's constitution, concerning the board of directors, according to ICAC.

Choy and the four alleged conspirators were jointly charged on Oct 10 with one count of conspiracy to offer advantages to an agent.

All five defendants have been released on ICAC bail, pending their court appearance in Eastern Magistracy on Friday morning for mention.

The case arose from a corruption report, followed by ICAC enquiries.

In February this year, 58-year-old Lo King-fat, former financial controller and company secretary of Benefun, was charged together with Choy by the ICAC, with a joint count of conspiracy to defraud with regard to the same plantation acquisition project in Xinjiang.

Lo will also appear in Eastern Magistracy on Friday for mention.

Benefun is a company listed in Hong Kong, which later was renamed CERG.

One of the businesses of Benefun was selling plantation products and organic fertilizers.

Choy is also the sole owner of Blackpool Stadium Limited. Blackpool wholly owns a subsidiary, Ample Rich Enterprises Limited, which holds a plantation project on the mainland, according to ICAC.

ICAC also alleged that Choy and Lo had made false representation to the directors and shareholders of Benefun, who were told that the acquisition of the entire issued share capital of Ample Rich by Benefun from Blackpool with HK$500 million had been a result of the "lengthy negotiations" between Benefun and Blackpool.

andrea@chinadailyhk.com

(HK Edition 10/12/2012 page1)