LDC members' vested interests discussed

BUSINESSMAN Mr Vincent Lo Hong-sui was the only member of a construction company involved in Land Development Corp (LDC) work while sitting on the LDC's managing board.

This was revealed by the Secretary for Planning, Environment and Lands, Mr Tony Eason, in reply to a question by legislator Dr Leong Che-hung.

Dr Leong asked whether LDC members had any vested interest in the companies selected for corporation projects.

Mr Eason said the Government was not aware of any member or former member of the managing board having any interest in any of the companies selected as joint-venture partners, except Mr Lo.

But he added that Mr Lo had declared his interest and had not engaged in the selection process.

Great Eagle Ltd, of which Mr Lo was a director, was a joint-venture partner in one of the LDC's projects.

''Mr Lo declared his interest and left meetings on all occasions when the selection of companies as joint-venture partners was discussed,'' Mr Eason said.

Mr Lo, chairman of the influential Business and Professionals Federation, retired from the board in early 1990.

Mr Eason stressed the corporation adopted an impartial criteria that considered the financial strength, track record and experience of the candidates for joint ventures.

''The selection of joint-venture partners is not undertaken by private negotiation between the LDC and individual developers. The LDC appoints external financial consultants to evaluate the tenders and make recommendations to the LDC's managing board as to which is the best offer,'' he added.