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Legislator bent, not broke, Legco rules, watchdog says

Industrial sector legislator Lui Ming-wah has been found to have deviated from Legislative Council rules after he failed to declare that two staff members were shareholders of a company that owns his district office - rented at taxpayers' expense.

But other lawmakers believed disciplinary action unnecessary as Dr Lui and two other lawmakers, who failed to comply with other rules, had promptly corrected the mistakes after being reminded by auditors.

The so-called deviations emerged after publication of an audit report commissioned by the Legislative Council Commission to monitor whether lawmakers had complied with rules governing their monthly reimbursement claims.

Commission vice-chairwoman Miriam Lau Kin-yee said members should raise their awareness of the guidelines. 'Since the members have already taken remedial action, I don't see there is a need to follow up,' she said. 'Of course there is room for improvement but they have not breached the rules. They have only deviated from the guidelines.'

The audit, conducted last year and covering October 2006 to September 2007, found Dr Lui failed to submit a form declaring the two staff members' interest in Nantin Enterprise Limited, which owns his district office. After being notified by the auditors, Dr Lui filed a declaration on December 27.

Under Section 29 and 30 of a Legco guideline put into effect in November 2006, lawmakers have to disclose clearly any relationship to their landlord and conduct an independent valuation of market rental to avoid conflict of interest.

Dr Lui, a member of The Alliance, could not be contacted last night.

Another legislator from The Alliance, Patrick Lau Sau-shing, said it was an oversight and Dr Lui was not covering up his interest in the company. Dr Lui had previously declared that he was an owner of the property since assuming office in 2000.

Frederick Fung Kin-kee, of the Association for Democracy and People's Livelihood, and unionist Li Fung-ying, were also singled out.

Mr Fung failed to submit details of a photocopier he bought, while Ms Li delayed submitting insurance package details for her staff.

Political analyst Ma Ngok said the incident might have some impact on Dr Lui's re-election plans and disagreed he had been merely negligent.

'He must be aware of the rules ... If others grill him on that, it will be hard to defend himself.'

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