Seven people have been arrested after allegations that directors of companies listed on the local exchange made corrupt payments to the managing director of an investment firm.
A stockbroker, two fund managers and four company directors were arrested by the Independent Commission Against Corruption.
The managing director of the Hong Kong subsidiary of the American private investment firm was arrested more than six months ago in connection with the same allegations.
The ICAC said last night: 'The allegations relate to the purchase of shares made on behalf of the investment firm's subsidiary in four companies and placement of shares between 1993 and 1995.' The investigation included 'allegations of corrupt payments made by directors of publicly listed companies'. The arrests took place on Tuesday; search warrants were used. No charges had been laid last night but at least four people were still being questioned.
Sources said the case was linked to a major scandal in Singapore, in which ex-Government of Singapore Investment Corporation manager Eddie Taw Cheng Kong was found guilty of eight charges of corruption in May.
Taw was found to have received S$2.4 million (HK$12 million) in bribes from Kevin Lee Kwok-wing, the Hong Kong managing director of the New York-based Rockefeller & Co (Far East).
