HK lawmaker to file complaint over CY Leung’s past HK$50 million business dealings with British anti-graft agency

09-Nov-2017 Intellasia | South China Morning Post | 6:00 AM Print This Post

A Hong Kong lawmaker revealed a plan to report HK$50 million in past business dealings involving the city’s former leader to Britain’s corruption-fighting agency this week.

Democratic Party lawmaker Lam Cheuk-ting said he hoped to raise the matter centring on Leung Chun-ying, now vice-chair of the Chinese People’s Political Consultative Conference, to the International Corruption Unit during a visit to Britain on Friday.

Leung is being investigated by Hong Kong’s Legislative Council for HK$50 million he received from the Australian engineering firm UGL following its 2011 purchase of DTZ, a real estate services company once listed in Britain. Leung served DTZ as a director.

The deal was made two days before Leung resigned from DTZ and the completion of the takeover. It stipulated that he would receive the money in two instalments, in 2012 and 2013. Leung served as the city’s leader from July 2012 to June this year.

“Leung received the sum from UGL to help UGL acquire DTZ, of which he was a director,” Lam said on Tuesday. “This could have harmed the interests of DTZ’s small shareholders.”

The lawmaker claimed there was no information suggesting DTZ’s shareholders had been told about the dealings.

I hope Britain can conduct a thorough investigation

Lam Cheuk-ting, lawmaker

UGL and Leung maintained the payment was to prevent him from forming or joining a rival firm within two years. However, Leung did not declare the payment to his cabinet, the Executive Council.

“I hope Britain can conduct a thorough investigation,” Lam added.

While Leung said DTZ’s senior management had been aware of the negotiations, the company’s administrator, Ernst and Young, had said it “had no detailed knowledge” of the deal.

The International Corruption Unit is a department under the British National Crime Agency that investigates serious criminal allegations of bribery and corruption committed either by a UK-based person or company or in any foreign jurisdiction in the world that currently receives international development aid from the country.

DTZ was delisted from the London Stock Exchange in 2011, a day after it was formally sold to UGL.

Lam was due to attend the annual Westminster Conference discussing politics in London next week and had planned to head to Britain this Friday to file the complaints.

The UGL saga returned to the public spotlight in May after it emerged that Leung had intervened behind the scenes in a Legco investigation of the UGL saga through pro-establishment lawmaker Holden Chow Ho-ding.


Category: Hong Kong

Print This Post