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Liao defends government?s handling of KCRC management feud

Updated at 7.42pm: Secretary for the Environment, Transport and Works Sarah Liao Sau-tung on Thursday afternoon defended the government?s handling of the management feud within the Kowloon Canton Railway Corporation.

Dr Liao told reporters the leadership crisis was ?unfortunate?.

?The important thing that we have been able to achieve is to clearly define the role of the chairman and the Chief Executive. So it will be beneficial to the future operation of the company.? she added.

The KCRC has experienced a bitter management feud prompting KCRC acting chief executive Samuel Lai Man-hay to resign on Thursday. Mr Lai had been having disagreements with chairman Michael Tien Puk-sun, who earlier offered to step down, but has now withdrawn his resignation.

Dr Liao said the roles of chairman and chief executive within the troubled corporation had now been more clearly defined.

?Because it is important to sort out the difference and also the unclear delegation of duties for the two posts ? very important posts; And for that, we have successfully achieved a solution,? she explained.

Asked by reporters to explain Mr Lai?s and Mr Tien?s handshake on Wednesday, she replied: ?The resolution between the chairman and the CEO is an important issue for the company.? ?And for disciplinary actions, the company has its procedures... and the criteria and duties of managing people is very important....?

The Transport Secretary said she was confident the KCRC could sort out its problems. ?All the staff are well-equipped to run this company efficiently and safely and to provide public transport for the company of Hong Kong.?

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