Former stock exchange vice-chairman Chen Po-sum has admitted she charged more to help Japanese broking giant Nomura Securities to find another floor seat because it was not a Chinese-run company.
She told the High Court yesterday she accepted an $800,000 fee from Nomura for securing an A-share exchange seat from On Wah Securities in 1994. The fee was 11.43 per cent of the $7 million selling price.
She only charged her long-time friend Yip Yuk-tsun, chairman of Shing On Securities, a $100,000 commission for the $29.7 million sale of his three seats to Emperor Securities.
Chen, who grew up in China during the Japanese Occupation, said she charged Nomura more because it was a foreign company.
'Nomura was a Japanese international company. When you do business with your fellow countrymen, you feel closer doing business than with a foreigner,' she said.
Mr Yip was so pleased with the speed of the sale he doubled the commission. Emperor paid $600,000 for its 'buyer's commission'.
Chen, 65, took the witness stand yesterday to answer bribery allegations against her. She is alleged to have solicited and accepted $1.6 million in relation to the transfer of stock exchange seats in 1993 and 1994. She denied the charges.