Panama Papers and PolyU: school confirms it sold its HK$2.5 million offshore investment to pro-Beijing firm for HK$20,001
Report comes with pledge to consider disclosure of all its subsidiary companies
Polytechnic University promised to consider stepping up financial disclosure of all its subsidiary companies following the Panama Papers revelation about two British Virgin Islands firms it has been running at a high level of secrecy.
In a 99-page report issued on Sunday, the university said while the arrangement of BVI firms was “formulated after due process” and legitimate, it would consider “full disclosure of all direct and indirect subsidiary companies in PolyU’s annual report regardless of their materiality”.
PolyU’s annual reports made no mention of the two BVI firms, and the university insisted that it did not breach professional financial requirements.
Responding to accusations that its governing council was kept in the dark about the offshore activities, PolyU said the subsidiaries’ annual reports were not provided to the body “in order not to burden council members”.
In its recent report, PolyU confirmed for the first time that it sold its entire HK$2.5 million investment to a company run by a pro-Beijing business for HK$20,001, through one of the BVI firms.