CY Leung Scandal Topped with New Exposure

• published: 15 Oct 2014
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Follow us on TWITTER: http://twitter.com/cnforbiddennews Like us on FACEBOOK: http://www.facebook.com/chinaforbiddennews After H K Chief Executive, Leung Chun-ying, was revealed to have received HK $ 50 million from Australian engineering firm UGL, Australia media made a new progress report on the Leung scandal on Tuesday. The secret $7m payment to C.Y. Leung by UGL was agreed to on the same day a rival bidder, a state-owned enterprise, trumped UGL's offer for his property firm by about ￡100 million. People wonder if some special arrangement was behind the series of exposures on the embattled Leung Chun-ying. Let's take a look. The Sydney Morning Herald reported on Tuesday, one condition of the ￡4 million payment to Mr Leung was that he "support the acquisition of the DTZ group by UGL", according to a letter outlining the agreement. The letter doesn't mention the rival bid. But an administrator's report into DTZ after the sale mentioned a rival "confidential" offer that valued DTZ at about ￡100 million more than UGL, added the report. The higher bid was rejected on the same day when a secret payment to CY Leung by UGL was agreed to. The other bidder was later revealed as China's state-owned Tianjin Innovation Financial Investment Company. The Tianjin company submitted an offer worth ￡50m more to DTZ's shareholders and ￡40m more to its creditors, RBS, than the deal accepted from Australian group UGL. The Chinese bidder had also lined up ￡10m of working capital for DTZ and a new ￡30m credit line in order to "rebuild" the failing firm, reported The Telegraph in Jan. 2012. "DTZ sacrificed value to get the deal with UGL done," said one person close to the Chinese bidder. "The Chinese offer was significantly better for everyone, for the employees, the shareholders and the creditors", added The Telegraph. In response to questions from Fairfax Media, a spokesman for Mr Leung said: "The decision to sell DTZ was a decision made by DTZ board of directors. DTZ played a significant role in initiating and negotiating the terms of the 'resignation' agreement that Mr Leung entered with UGL." Hong Kong Legislative Council Leung Kwok-hung: "I don't believe Leung Chun-ying's integrity. We have no way to confirm what he has to say now. So I think he should step down immediately. This is the best choice. He is Hong Kong Chief Executive, and he has great power, any of his dishonest business dealing in the past is only to his own benefit. He may be subject to investigation and prosecution in Australia and the UK. He should resign. It can not continue to delay." Commentator Tang Jingyuan: "This sudden hit of a second wave of exposure on Leung Chun-ying's corruption scandals should at least point out that the Communist official may have determined to abandon Leung. This exposure also says that this is not an end. If he does not resign, more scandals are likely to be exposed." In fact, new exposures on Leung Chun-ying have been reported since the 8th. NY Times reported on Oct. 10 that UGL has a longstanding contract, worth approximately $41.9 million, to provide maintenance services for Hong Kong's MTR. The Leung led city government, which has a 77 percent ownership in MTR, appoints its chairman. The chairman of MTR is Raymond Ch'ien, who is also a board member at UGL. NY Times also reported, Albert Ho, a lawyer and the former chairman of Hong Kong's Democratic Party, said it was a clear conflict of interest for Mr. Leung; David Webb, an expert on corporate governance in Hong Kong, said Mr. Ch'ien's relationships with MTR and UGL, as well as the government's reappointment of him to head MTR while he was on the UGL board, were improper. Tang Jingyuan indicates that the spate of scandals of Leung Chun-ying could be Xi Jinping's tactic to break the present predicament in Hong Kong. Tang Jingyuan: "To remove Hong Kong Chief Executive, the regime must go through the National People's Congress. But, Leung Chun-ying is in fact a Jiang faction figure in Hong Kong, and the NPC is dominated by another Jiang faction Standing Committee member Zhang Dejiang. It can be very troublesome to take the procedure of the NPC to remove Leung. So, the direct exposure of his corruption will lead to the direct involvement of Hong Kong's ICAC (Independent Commission Against Corruption). He can be directly removed once the ICAC investigation finds him guilty. In the Politburo's collective learning meeting on the 13th, the Communist regime leader Xi Jinping quoted the ancient governance of "virtue first, punishment second". Some interpreted it as his stance in suppression of the Umbrella Revolution. 《神韵》2014世界巡演新亮点 http://www.ShenYunPerformingArts.org/