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Chief Executive Office of Hong Kong Special Administrative Region said on Wednesday evening that there is no requirement for Mr. Leung Chun-ying to declare payments from an Australian company before taking his office as the region's leader.
Australian newspaper, the Sydney Morning Herald, published a series of reports on Wednesday which claimed that Leung Chun-ying, the incumbent Chief Executive, "pocketed millions in secret fees from a listed Australian company in return for supporting its Asian business ambitions."
According to the reports, the arrangement is outlined in a secret contract dated Dec. 2, 2011, before Leung was elected chief executive, in which Australian engineering company UGL agreed to pay him four million pounds.
The payments were made in two installments, in 2012 and 2013, after he became Hong Kong's top official, according to the newspaper.
Leung was sworn in as Hong Kong's fourth-term Chief Executive on July 1, 2012.
He served as the second Convener of the Executive Council from July 1, 1999 to Oct. 3, 2011. He was the Asia Pacific Director of DTZ, a global company in property services industry which is now a division of UGL Limited.
The Chief Executive Office said in a statement that Mr. Leung announced his resignation from DTZ on Nov. 24, 2011, which took effect on Dec. 4, 2011.
The agreement signed between UGL and Leung on Dec. 2, 2011 was a resignation agreement which set out arrangements on the possible scenarios if Mr. Leung was not elected Chief Executive, the statement said.
Citing UGL, the statement said the agreement was simply a non- compete arrangement which was to ensure that Mr. Leung would not move to a competitor, set up or promote any business in competition with DTZ, or poach any people from DTZ, and hence to ensure the business retained its value after the acquisition by UGL.
Such agreement was a confidential commercial arrangement and a standard business practice, it said, adding that Leung Chun-ying has not provided any service to UGL after signing the agreement.
After resignation from his post in the Executive Council on October 3, 2011, Leung officially announced to run for the Chief Executive on Nov. 27, 2011.
The statement said the agreement between Leung and UGL does not involve any "deferred rewards." As stated in UGL's reply to the Sydney Morning Herald, "at time of the negotiations, media coverage suggested that other candidates were favored to be elected."
The statement said the payments arise from Leung's resignation from DTZ, not any future service to be provided by him.
Both the resignation from DTZ and conclusion of the agreement with UGL took place before Mr. Leung was elected as the Chief Executive. There is no requirement under current systems of declaration for Leung to declare it.
Leung has transferred all his shares of DTZ Holdings Plc and its subsidiaries to a trust. The trustee is a professional practicing accountant. Mr. Leung has declared the above according to the system of declaration of interests by members of the Executive Council, the statement said.
