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Settling of flats-row case questioned

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The government owes the public an explanation for an out-of-court settlement reached over the Grand Promenade affair with former buildings chief Leung Chin-man, a Democratic Party legislator said. A judge announced the settlement yesterday.

A DAB legislator warned that the Legislative Council was not done with the controversy over the housing development in Sai Wan Ho.

Court of First Instance judge Michael Hartmann yesterday consented to Mr Leung dropping his judicial review challenge to last year's Audit Commission report on the then buildings chief's granting of bonus floor area to Henderson Land in return for the construction of a bus terminal and police base.

Mr Justice Hartmann said he had been informed Mr Leung and the Director of Audit had reached an out-of-court agreement.

Director of Audit Benjamin Tang Kwok-bun welcomed the decision to drop the case and hoped it had put an end of the controversy, which led to a Legco inquiry that backed the commission's findings and an independent inquiry that cleared Mr Leung of misusing his powers.

Mr Leung launched his challenge in November.

He had been asking the court to quash three of the report's findings: that the Buildings Department should have sought clarification from other government departments before classifying the site; that the department may have misled other tenderers; and that it should have consulted relevant departments before granting bonus floor area and setting the plot ratio.

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