Beijing 'not behind leak of CY deal'

An authoritative source in Beijing dismissed speculation the central government was behind the leak of documents on a multimillion-dollar deal that plunged Leung Chun-ying in a political and legal crisis.

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Leung Chun-ying has denied any wrongdoing. Photo: Reuters

Published: 4:45am, 16 Oct 2014Updated: 3:10pm, 20 Jun 2018

An authoritative source in Beijing dismissed speculation the central government was behind the leak of documents on a multimillion-dollar deal that plunged Chief Executive Leung Chun-ying into a political and legal crisis.

"The central government firmly supports CY and his government," the source told the Post yesterday.

Last week, Australia-based Fairfax Media revealed that Leung pocketed £4 million (HK$50 million) from Australian company UGL six months before he became the city's chief executive. UGL bought the insolvent DTZ Holdings for £77.5 million in late 2011. The property services firm was listed in London and Leung was a director.

A side deal arose from the purchase two days before Leung's resignation from DTZ took effect. It stipulated he would receive £4 million in 2012 and 2013.

Both the Australian firm and Leung said the money was to prevent him from joining or forming a rival firm within two years. But the deal contained an "additional commitment" by which Leung agreed to act as an "adviser" for UGL "from time to time". It was revealed on Wednesday that Leung sought a further £3 million during negotiations with UGL, a request that was ultimately denied.

The side deal raises questions about whether it was proper for a Chief Executive to have agreed to provide paid advisory service to a commercial entity and whether the deal harmed the interests of Royal Bank of Scotland (RBS), DTZ's main creditor.

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