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December 24, 2014

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Property tycoon jailed for 5 years over millions paid to HK official

HONG Kong property tycoon Thomas Kwok and the city’s former deputy leader were jailed for corruption yesterday after a trial that shocked the city and deepened anger at cosy ties between officialdom and big business.

Former chief secretary Rafael Hui, 66, was jailed for seven and a half years on five graft charges, including misconduct in a public office — making him the highest-ranking official in Hong Kong’s history to be found guilty of taking bribes.

Kwok, 63 — who was joint chairman of the southern Chinese city’s biggest property company, Sun Hung Kai — was sentenced to five years after he was found guilty of conspiracy to commit misconduct in a public office over a series of payments to Hui that were worth a total of HK$8.5 million (US$1.1 million).

The seven-month trial centered on a total of HK$34 million in handouts, which the prosecution said were made to Hui by Thomas Kwok and his billionaire brother Raymond to be their “eyes and ears” in government.

Raymond was cleared of all charges and Thomas cleared of two out of the three against him.

“To know that the former number two in government had received bribes must be a deep disappointment to many people in Hong Kong,” said Judge Andrew Macrae. He said Hui had been “blinded by the desire to sustain the high life.”

Prosecutors said Hui enjoyed an extravagant standard of living that far outstripped his official salary.

He was also found guilty on charges relating to the use of luxury apartments rent-free and accepting unsecured loans.

Hui, who is married, admitted spending at least HK$7 million on a mistress in Shanghai, for whom he bought properties and made investments, according to media reports.

He also bought her bags, watches and other presents.

Hui was ordered to pay a fine of HK$11.182 million — the sum of one of the payments he was found guilty of receiving.

He was given nine months less than the maximum sentence considered by the judge because of his good character and “lifetime” contribution to society.

“It’s really too lenient for Rafael — he is the most senior (official) to be indicted and then convicted of bribery in the history of Hong Kong,” said Geo Securities CEO Francis Lun, although he conceded that the sentence showed “nobody is above the law.”

In sentencing Kwok, Macrae said he had no doubt that he was “at heart a good man.”

He said he had considered a maximum sentence of six years, but handed down one year less to account for Kwok’s good character.

Kwok was fined HK$500,000 and disqualified from any company directorship for five years after resigning from Sun Hung Kai on Friday.

One of his lawyers, Lawrence Lok, told reporters that Kwok plans to appeal.

Kwok waved to his family who hugged each other after hearing his fate, telling them to “be good.”

Ahead of the sentencing hearing, Macrae described the case as “difficult.” “One is dealing with otherwise decent men who are not young, but who have committed serious offences,” he said.

The payments to Hui were said to have been made by a series of complicated transactions involving middlemen.

Two of them — Sun Hung Kai former director Thomas Chan and Francis Kwan, the former non-executive director of investment firm New Environmental Energy Holdings — were also found guilty on two charges.

Chan was sentenced to six years while Francis Kwan was given five years. Both men are also in their 60s.




 

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