Secretary for Development Mak Chai-kwong authorised a civil-servant tenant to sell a flat that is a cause of controversy because of a 'cross-leasing' scheme, Lands Registry documents reportedly show.
The other civil servant, Tsang King-man, meanwhile rented his own flat to Mak and later authorised Mak to sell it, Apple Daily reported.
Its report said this indicated there was a close relationship between the two. Mak has said the arrangement to lease each other's flats in a North Point building was not premeditated.
Mak has been accused of abusing government housing allowance while a civil servant in the 1980s by leasing his flat to Tsang and claiming the allowance for renting Tsang's flat.
Mak and Tsang gave each other written power of attorney to sell their flats in the City Garden estate, Apple Daily reported yesterday.
Mak bought a flat there in 1986 for HK$925,800. Two days after Mak's purchase, Tsang, currently assistant director of the Highways Department, bought an apartment one floor above for HK$928,000.