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The officer, 41, is an assistant subdivisional commander at Ta Kwu Ling police station. The Post understands he had racked up large gambling debts and attempted suicide last Tuesday at his home inside the Lai King Disciplined Services Quarters in Kwai Chung.
He said he had relationship problems.
During their investigation into his suicide attempt, officers discovered that a bag containing 670,000 yuan which was evidence in a case had been cut open and the cash replaced with fake money. It had been stored inside a safe.
Officers suspected the senior inspector was involved and arrested him for theft at his home on Friday.
A police spokesman said the force had a set of standard procedures for handling evidence and attached great importance to cases that concerned officer integrity.
"The police force will not tolerate any illegal acts among officers and will handle this case seriously," the spokesman said.
In May 2016, a 43-year-old sergeant stole HK$1.07 million (US$136,370) in bail money from a safe at a police station before fleeing.
He was later arrested in Zhuhai, across the Pearl River estuary in mainland China, and brought back to Hong Kong. He was jailed for two years.
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