TNAG-1449-FCO40-1953-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1986 — Page 303

Speech by the Attorney General, Mr. Michael Thomas

Second Reading of Theft (Amendment) Bill 1986

12 March 1986

Sir,

Q.C.

I move that the Theft (Amendment) Bill 1986 be

read a second time.

2.

In the course of prosecuting commercial crimes,

my Chambers have encountered difficulties under the

existing law in dealing with certain fraudulent transactions

carried out for the purpose of obtaining credit from

banks or deposit-taking companies. Let me give a typical

example. A person dishonestly and by deception induces

a bank to lend him some money. The proceeds of the loan

are transferred to an account in his name in that bank

or deposit-taking company. The person then disburses

the amount of the loan from his account. In its present

form, our view is that the Theft Ordinance does not clearly

make such fraudulent activity illegal.

3.

It is, of course, an offence under Section 17 of

the Theft Ordinance to obtain dishonestly property belonging

to another by deception.

But in my example, the sum

which forms the loan obtained fraudulently is created at

the moment when the bank or deposit-taking company and the

fraudulent borrower come to an agreement. So it is not

I thought