There were two huge mistakes C.Y. Leung did in suppressing Hong Kong protesters recently. First, the Hong Kong CEO unleashed a brutal crackdown using pepper spray and tear gas, something rarely used on peaceful protesters. Second, he used triad gangs to launch sexual assault, harassment and intimidation on the remaining stubborn but persevered protesters.

While the frontline battle saw a fight between pro-democracy protesters and C.Y. Leung, the background battle has just begun. It’s democracy sponsored by United States versus communism backed by China. The first salvo against C.Y. Leung – his allegedly bribe amounting to at least A$7 million (US$6.2 million; £4 million; RM20 million) back in 2011, before he surprisingly won the post as the more powerful person in Hong Kong.

 

Apparently, C.Y. Leung received the kickback from Australian engineering company UGL. In a contract dated Dec 2, 2011, UGL paid the money to C.Y. Leung in a deal that saw the Australian company buying the insolvent property company DTZ Holdings for £76 million (A$140 million; US$123 million; RM400 million), of which C.Y. Leung was a director and chairman of its Asia Pacific operations.

The exposure by The Sydney Morning Herald revealed documents that shows C.Y. Leung agreed to ensure that nominated members of his Asian management team remained in place and also that he would “provide such assistance in the promotion of the UGL Group and the DTZ group as UGL may reasonably require”. Mr Leung also agreed to not to compete with UGL and to act as “a referee and advisor from time to time”.

 

Interestingly, C.Y. Leung announced his resignation from DTZ on November 24, formally confirmed his candidature for the role of Hong Kong chief executive on November 27 and signed the lucrative contract on December 2, 2011. His resignation took effect on December 4, 2011, the day that UGL acquired DTZ. The £4 million was made in two instalments in 2012 and 2013.

Amusingly, C.Y. Leung’s spokesman Michael Yu defended the Chief Executive’s actions, saying that the payments related to past, not future, service. So, was that a statement to indicate that it’s perfectly alright to be corrupt as long as Mr Leung is not the Hong Kong CEO? Like it or not, such reply only shows an admission that C.Y. Leung has indeed received the A$7 million in exchange not to compete with DTZ.

 

In other words, C.Y. Leung agreed not to set up or promote any business in competition with DTZ, as long as UGL pays him the secretive financial windfalls. To a certain degree, you can read that as a “blackmail” to ensure Mr Leung Chun Ying leaves DTZ alone, not even any attempt to pinch their employees away. Another question is – why was only C.Y. Leung gets the “special golden handshake” when other shareholders get nothing?

And you don’t have to be a rocket scientist to see the conflict of interest in this hanky-panky deal – a person serving as Hong Kong CEO while playing an advisory role to a commercial company. No wonder C.Y. Leung’s daughter – Leung Chai Yan – couldn’t care less when she sarcastically thanks her detractors by pointing out that the necklace and her other expensive clothes were paid for by public funds through her father’s salary. Perhaps she didn’t realize the money she spent was from her daddy’s kickback and not salary alone.

Other Articles That May Interest You …

• China – Ain’t Sick Man Of Asia, Too Wealthy For Anyone To Lecture Them
• You’re Fired – HK Chow Tai Fook’s Deputy PR Head, Joanna Kot, Axed
• Here’s How Hong Kong Chief, CY Leung, Uses Gangster & Police To Break Protesters
• China Shutting Down Internet In Hong Kong? No Problem – FireChat To The Rescue
• Chaos As Financial Hub Hong Kong Under Siege – What Do They Want (Photos)?
• Revealed! Opium-Laced Noodles – Blame It For Your Positive Drug Test

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October 9th, 2014 by financetwitter

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