The Democratic Party has decided to open the accounts of its de facto research unit for public scrutiny to answer accusations of a conflict of interest.
Party vice-chairman Law Chi-kwong said since the Only View Company was established in 1995, the party had pumped in $1.2 million in loans, on top of a monthly $308,000 consultancy fee.
'The only reason Only View exists is to work for the Democratic Party and it is not a normal consultancy company, it is of a semi-voluntary nature. So when it is in financial difficulties, the party lends it money,' he said yesterday. 'But in the wake of public concerns, and in order to raise accountability and transparency, we have decided to open its accounts and staff pay records to the public to avoid further problems.'
Critics have accused the party of fraud for pumping more than $5.7 million into the company, which was once owned by a Democrat but has since changed hands. Pro-Beijing groups claim the party has engaged Only View as a shell company to cover staff costs, which are paid for by the monthly allowances of the party's legislators.
Guidelines forbid legislators from engaging consultancy firms owned by their party. Lawmakers must also provide full details of how claimable monthly allowances are spent.
Since 1995, the company has run up an accumulated loss of more than $280,000. Of the $3.3 million expenses last year, 90 per cent went on staff, while its total income was $3.19 million.
