MCLC: Kwok brothers charged with bribery

[Denton, Kirk]

MCLC LIST
From: kirk (denton.2 at osu.edu)
Subject: Kwok brothers charged with bribery
***********************************************************

Source: The Guardian 7/13/12):
http://www.guardian.co.uk/world/2012/jul/13/hong-kong-tycoon-brothers-charg
ed

Hong Kong's tycoon Kwok brothers charged over alleged bribes to official
Case marks bold gambit by anti-corruption commission in Hong Kong, which
has been shaken by series of political scandals
By Vaudine England in Hong Kong

They are two of Hong Kong's best-known tycoons, and among the richest
property-dealing magnates in Asia, brothers whose narrative is steeped in
a history of mouthwatering investments, a divisive feud, kidnapping,
affairs and untold wealth.

To that list must now be added criminal prosecution, as the Kwok brothers
have been formally charged over alleged bribes to one of Hong Kong's most
senior officials in a case that sent shivers through a political and
business elite that is used to conducting its affairs with impunity.

Thomas Kwok Ping-kwong and Raymond Kwok Ping-luen are charged over
allegations that the former chief secretary Rafael Hui was bribed for the
best part of a decade until 2009. Hui is alleged to have enjoyed the
rent-free use of two apartments and two unsecured loans while he was the
second most senior government official, worth a total of HK$34m (£2.8m).

Two others linked to the Kwok brothers' huge empire, Sun Hung Kai
Properties, have also been charged over the same allegations: the
company's executive director, Thomas Chan Kui-yuen, and the businessman
Francis Kwan Hung-sang.

The move marks a bold new gambit by Hong Kong's Independent Commission
Against Corruption (ICAC), which has taken on one of its biggest
challenges since it was formed in the 1970s to sweep corruption out of the
police.

"I think this shows Hong Kong in a very good light," said a partner in a
leading Hong Kong law firm. "It means that if there is wrongdoing, no one
is above the law. I don't think you can say that about the rest of China
or indeed about many places in the world."

Walter Kwok Ping-sheung, the elder brother to Thomas and Raymond, is not
among those charged. It is understood he was ejected from control of the
family firm in 2008. He was kidnapped 15 years ago by the notorious Cheung
Tze-keung, alias "Big Spender", and his gang and held in a cage before a
ransom was paid. His subsequent relationship with the lawyer Ida Tong
<http://www.forbes.com/2008/02/21/shk-properties-feud-face-markets-cx_vk_02
21autofacescan02.html> is believed to have damaged his ties with his wife
and family.

Hong Kong has long prided itself on its rule of law and its firm action
against corruption, in contrast to neighbouring mainland China.

That faith had fractured in recent months, however, with the exposure of a
series of scandals involving the highest levels of government and
business, and a rising anger at the growing gap between rich and poor.

Trading in Sun Hung Kai Properties shares was halted on Friday morning,
although the company has in recent weeks continued to buy sites in Hong
Kong for development.

Meanwhile, the current administration has been hit by the resignation on
Wednesday of Mak Chai-kwong – a minister in the new government who managed
just 12 days in his job – over possible abuse of a civil servants' rent
perk. He denies any wrongdoing.

Hong Kong's chief executive, Leung Chun-ying, continues to face scrutiny
over illegal structures built at his home.

The former chief executive Donald Tsang is facing a separate investigation
by the ICAC. He has apologised for taking free trips in tycoons' private
jets, but denies breaking the law.