Hong Kong's former Development Minister Mak Chai-kwong and Highways Department Assistant Director Tsang King-man Tuesday appeared in District Court over an alleged housing allowance fraud.

Mak and Tsang were charged by the Independent Commission Against Corruption (ICAC) in October with conspiracy to defraud the government of private tenancy allowances between June 8, 1985 and December 31, 1990, during which they allegedly cheated benefits worth more than 700,000 HK dollars (about $90,323) by concealing that they had financial and proprietary interest in flats they rent from each other's wives.

The defence counsels applied for an adjournment, saying they needed time to examine materials. The case was allowed to be adjourned until December 18. Mak and Tsang have been released on a 50,000 HK dollars bail.

Mak was appointed as the Secretary for Development in June and took office on July 1. He resigned on July 12 following his arrest by the ICAC.