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SCMP Reporter

MR Richard Allen will receive a golden handshake of millions of dollars - but less than $10 million - in agreeing to end his six-year contract early as Chief Executive Officer of the Provisional Airport Authority (PAA).

  The Government and the PAA yesterday remained silent on the payout Mr Allen had accepted, despite growing pressure from Legislative Councillors for details to be disclosed.

  Legislators also demanded an urgent meeting with government officials to find out what happened to lead to Mr Allen's sudden replacement by Dr Hank Townsend.

  They also wanted to know why Mr Allen was on such a lengthy contract running through to 1997, when common practice was to renew two-or three-year contracts.

  It is understood that Mr Allen, who joined the airport body in February 1991, had a package of salary, perks and gratuities worth about $4 million a year.

  Should Mr Allen be entitled to full compensation, his severance package would have run to as much as $16 million.

  However, it is said that the amount would be ''only seven figures''.

  Despite mounting pressure from the legislators for disclosure of the payoff, the Government insisted on keeping the information confidential.

  The Financial Secretary, Mr Hamish Macleod, declined to disclose the payment.

  ''I don't think it is appropriate to speculate about the reasons for the departure. We are dealing here with matters between an employer and an employee. Those are normally kept confidential,'' said Mr Macleod.

  Asked if the Government would consider a review for the employment terms of PAA directors, Mr Macleod replied with a straight ''no''.

  He said he had yet to decide what to do if legislators asked the Government for an explanation.

  PAA corporate affairs manager, Mr Phillip Bruce, said: ''We don't have a figure. It is a matter for Mr Allen and the board,'' he said.

  Defending the Government's position to keep the figure confidential, a source said the PAA was a corporation which was required to operate itself on a prudent financial basis, and therefore both Mr Allen's remuneration and his severance package should not be disclosed.

   The Government has disclosed payoff figures before. It told legislators that two senior executives of the Kowloon-Canton Railway Corporation (KCRC) got a total of nearly $4 million in early 1989.

  Former KCRC directors, Mr Joe Wade and Mr Felix Chow, were awarded $1.87 million and $1.95 million respectively in return for their resignations.

  The golden handshake for the KCRC executives caused uproar in the Legislative Council with members demanding the Government to justify the payoff.

  Legislators were yesterday united in their call for the Government to disclose the golden handshake and the reason for Mr Allen's sudden departure.

  The call was made at the House Committee meeting by Meeting Point legislator Dr Leong Che-hung, who said the change of personnel had caused great concern to the society and the Legislative Council.

  Dr Leong said he would like to know the basis for the sudden change of personnel, the effect of the change on the tight schedule of Airport Core Programme works, and the amount of money involved in the severance package.

  The liberal legislator was worried if Mr Allen's exit would affect the already delayed schedule of the airport core projects.

  He said the Government should ensure the PAA was accountable to the public as well as the Legislative Council.

  ''I don't think the authority is transparent enough. We can't even know how much Mr Allen earns and how much he has got for the departure,'' Dr Leong said.

  Dr Leong said there should be elected members to sit on the board of directors of the authority.

  United Democrat legislator Mr Albert Chan Wai-yip said the Government should not refrain from its responsibility to disclose the size of the payment.

  ''The PAA is a public service corporation. The Hongkong Government is the sole shareholder. How can the Government refuse to disclose the golden handshake by saying it is contractual matters between a company and an employee?'' he said.

  His Legco colleague Mr Chim Pui-chung said the Government should reveal the amount, saying that it was ''ridiculous'' if the amount was an astronomical figure.

  Co-operative Resources Centre legislator Mr Steven Poon Kwok-lim suggested the PAA should offer short-term contracts to staff at the initial stage to prevent a recurrence of the incident.



Details of payoff sought by Legco