• Sun
  • Aug 31, 2014
  • Updated: 9:37am
NewsHong Kong

Bank of East Asia seeks to have former chief secretary Rafael Hui declared bankrupt

PUBLISHED : Tuesday, 24 September, 2013, 4:38pm
UPDATED : Wednesday, 25 September, 2013, 2:09pm

Embattled former chief secretary Rafael Hui si-yan faces fresh financial troubles after the Bank of East Asia filed a petition in the High Court on Monday to have him declared bankrupt.

Media reports last year said Hui, 65, owed the bank HK$60 million in loans.

In May, Bank of East Asia chairman David Li Kwok-po said Hui was paying the bank back in batches.

In April, the bank filed a writ against Hui in the High Court, asking that he pay all money due under two overdraft facilities and two credit cards the bank had provided to him under a cardholder agreement.

The bank also wanted him to pay interest and costs related to a breach of the terms of the facilities and the agreement. The writ did not disclose the amount of money involved.

In addition to the BEA lawsuit, Hui is facing at least three more suits from three different creditors claiming a total of more than HK$14 million.

Standard Chartered Bank has sued Hui for HK$1.19 million and interest arising from loans that Hui drew on four credit cards and a personal overdraft, while Chong Hing Bank has claimed Hui owes it HK$9.8 million.

Honour Finance, a finance company owned by Sun Hung Kai Properties, also claims Hui owes it about HK$3.16 million arising from a 2004 loan, in which Hui stood as guarantor for the firm Top Faith Enterprises, which was owned and controlled by him.

Apart from the civil claims, Hui is also embroiled in the most high-profile corruption case in Hong Kong’s history with SHKP co-chairmen Thomas Kwok Ping-kwong and Raymond Kwok Ping-luen.

In March, Hui, the Kwok brothers and two others pleaded not guilty in Eastern Court to eight joint charges filed by the ICAC.

Hui faces all eight charges, including one of misconduct in public office.

This charge alleges that when he was chief secretary, from June 2005 to June 2007, he failed to declare or disclose provisions and annual extensions of a HK$3 million unsecured loan from Honour Finance – the claimant in the civil suit.

The criminal case will be heard in the Court of First Instance on May 8, 2014.

 

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