HK ex-official, property tycoon guilty in graft case

Hong Kong

A FORMER top Hong Kong civil servant was found guilty on Friday of accepting HK$8.5 million (S$1.4 million) in bribes from executives of property developer Sun Hung Kai Properties Ltd in the city's highest profile corruption case.

The jury of six women and three men reached their verdicts after deliberating for five days following a trial that exposed the cosy relationship between the city's powerful developers and government in the former British colony.

Rafael Hui, 66, who headed Hong Kong's civil service from 2005 to 2007, was found guilty of three counts of misconduct in public office and two counts of conspiracy to commit misconduct. He had faced eight charges related to bribery and misconduct in public office, all of which he denied.

Raymond Kwok, 62, co-chairman of Sun Hung Kai Properties, the city's largest developer, was cleared of all charges.

But his brother and fellow co-chairman, billionaire Thomas Kwok, 63, was found guilty of one count of conspiracy to commit misconduct in public office. He had pleaded not guilty to that and two other charges.

Raymond said that he was happy he had been proven innocent although he was sad for his brother. "We'll continue to support Kwok Ping-kwong and his family," he said, referring to his brother.

The usually-jovial Hui, friends with the Kwoks since childhood through Macau family connections, sat expressionless, staring at the judge as the verdicts were announced.

The judge is expected to sentence the defendants, who face years in prison, on Monday.

The guilty verdicts send a message that Hong Kong's powerful political and business elite are not untouchable in a city where many believe they have enjoyed unfair privileges.

Hui's conviction by Hong Kong's Independent Commission Against Corruption had been widely expected given the strength of the evidence against him. It provides a boost to the powerful anti-graft agency, which has faced criticism in recent years that it has struggled to land big cases.

It has also been under fire over public perceptions that its leaders have too eagerly courted relations with mainland officials, putting its vaunted independence at risk.

Shares of Sun Hung Kai Properties, which has a market value of US$41 billion, were suspended just before the verdicts were announced. They had risen more than one per cent on Friday, in line with the benchmark index.

Sun Hung Kai executive Thomas Chan and businessman Francis Kwan were both found guilty of two charges of conspiracy to commit misconduct in public office and conspiracy to offer an advantage to a public servant.

The case, involving millions of dollars in payments to former chief secretary Hui, threatens to tarnish the reputation of Hong Kong's vaunted civil service.

Hui had been accused of accepting millions of dollars in payments between 2005 and 2007, including HK$8.5 million in the months leading up to his appointment as chief secretary. Reuters