Officials were unaware of Director of Immigration Laurence Leung Ming-yin's links to a businessman close to the mainland leadership until the connection was reported in the press, the Chief Secretary Anson Chan Fang On-sang admitted yesterday. The South China Morning Post first reported the links. Mrs Chan told the Legco select committee inquiring into Mr Leung's sudden departure that, as head of a disciplinary force, he should not have been involved in business in China. It could have created an impression of a conflict of interest, she said. Secretary for Civil Service Lam Woon-kwong said last week the four charges levelled against Mr Leung included his failure to declare his $100,000 investment in New Hong Kong China Advertisement Limited. It was wound up after it failed to obtain a licence to do business in China. The South China Morning Post disclosed the company's correct name was New China Hong Kong Advertising and a major shareholder was The New China Hong Kong Group, headed by Tsui Tsin-tong, a member of the Chinese People's Political Consultative Committee and the Preparatory Committee. 'We didn't have any other information about the other shareholders of the company. We found out only when it was revealed by the press,' Mrs Chan said. Cheung Man-kwong of the Democratic Party said: 'Is the Government aware Mr Tsui has joined China North Industries Corp [Norinco], which is a Chinese arms and ammunition firm, in setting up a firm called Rex International Development Company Limited in Hong Kong? 'Did the Government know the Strategic Trade Investigation Division of the Customs and Excise Department has investigated Rex Company over trading arms and ammunition?' Mrs Chan said it was not appropriate to comment. She was asked whether Mr Leung's failure to declare his business links with Mr Tsui was the reason the Government sought his resignation. 'Any one of the four allegations we made deserved taking action against him,' Mrs Chan said. Mr Cheung asked whether the business links and Mr Tsui's political and business background was why the Government had lost confidence in Mr Leung. Mrs Chan said the administration lost confidence in Mr Leung, who was not politically vetted, because of his behaviour.