The administration of Chief Executive Tung Chee-hwa is encountering its first brush with private scandal. A week ago today a newspaper reported that Financial Secretary Antony Leung Kam-chung had benefited by buying a new luxury car ahead of his budget earlier this month confirming tax increases for similar vehicles. Within hours, Mr Leung had offered an explanation - he needed a fourth car for his new-born child - and paid double the difference in price to charity. That was later increased to $380,000 - twice the taxable amount.
Last night matters took a fresh turn. Mr Tung released a personal letter to Mr Leung expressing considerable concern at his 'gross negligence' but, ultimately, refusing to accept an offer of resignation made within hours of the initial reports. Mr Tung did make clear, however, that Mr Leung had breached the Code for Principal Officials under the Accountability System. Significantly, Mr Tung acknowledged the arousal of 'public suspicions' over conflicts of interest.
Soon after, Mr Leung gave a statement, televised live, marked by obvious remorse and regret. 'My behaviour is highly inappropriate as a Principal Official,' he said. 'I would like to make my most sincere apology to the general public. I would like to reiterate that I had no intention to evade the tax liability and that the mistake is an oversight.'
At this point, it does appear that Mr Tung and Mr Leung have lived up to their obligations once the original scandal emerged. Far from getting off easily, Mr Leung should have learnt a vital - if painful - lesson about the differences between life as a high-flying banker and that of the senior public servant. That is entirely fitting for a sin that does appear to be one largely of considerable political naivete rather than anything more sinister. Undoubtedly his credibility - important for an official who must represent Hong Kong on the international financial stage - has taken a dent, but not a fatal blow. It is worth noting here that public opinion seems decidedly split over whether he should go or not.
Tomorrow Mr Leung will address the incident before the Constitutional Affairs Panel of the Legislative Council. He must again apologise, explain himself fully and offer as complete a sense of reassurance as possible.
And at that point, the matter should rest. It will be time to move on, the accountability system having been put to the test and showing itself to work.
