Two former Government officials were convicted by the District Court today for a $700,000 housing allowance swindle.

Former Secretary for Development Mak Chai-kwong and Assistant Director of the Highways Department Tsang King-man were found guilty of a joint count of conspiracy to defraud and related charges.

The Independent Commission Against Corruption said Mak and his wife bought a flat at City Garden, North Point, in 1985 and Tsang and his wife bought an identical flat on the floor above. They then leased each other's flats at the same monthly rent and executed their respective lease agreements with the named landlord as each other's wife.

The court heard Mak and Tsang conspired together to defraud the Government by falsely representing that they did not have financial or proprietary interest in the flat they leased and that the lease in relation to each of the flats was genuine.

They applied for private tenancy allowances and received about $260,000 and $445,000 from the Government from August, 1986, to December 31, 1990.

Judge Johnny Chan adjourned sentencing to August 8, and released them on bail.