The Democratic Party has promised to give a full explanation of its links with a consultancy company which helps it with legislative work.
The pledge came after the party was criticised at a Hong Kong Island constituency forum yesterday, during which candidates stepped up negative campaigning against each other.
The Democrat team, led by chairman Martin Lee Chu-ming, was asked why party legislators had hired the firm, Only View Company, at a cost of $6 million over the past two years.
Dr Yeung Sum, who ranks second on party's Hong Kong Island list, said the company had helped the party sponsor motions and legislative amendments during council sittings.
He said the Legco secretariat had approved the hiring of the company and the party was satisfied with its performance. He said party treasurer Fung Wai-kwong had been a director of the company but quit in September 1995.
'It's absolutely unfounded that the leaders of the company are Democrats,' said Dr Yeung, referring to some newspaper reports. He said he did not know who the directors were. 'We only used its past performance when deciding whether to hire it,' he said.
Dr Yeung said company staff worked at the Democrats' office in the west wing of the Central Government Offices in Central without paying rent but denied it was a shell company. He also admitted the company made no profit by working for the Democrats.