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SCMP Reporter

Former housing chief steps down after Tsang orders review of case
Former housing chief Leung Chin-man stepped down early today from his job with a New World Development subsidiary, hours after the chief executive ordered a review into the decision to let him take up the post.
In a statement issued at 1am, New World China Land said it had accepted Mr Leung's resignation, with immediate effect, and that no compensation would be involved in the termination of his contract.
Mr Leung, in a separate statement, said he would not seek any compensation from the government over the controversy since he did not want to waste public funds.
New World China said: 'We always emphasise the harmonious atmosphere of society and we accept public opinion.
'We and Mr Leung both deeply understand that this case has been a serious concern to the community and it has caused some impact to social stability and harmony.
'After serious consideration, we decided to respond to the bigger picture and terminate the contract unconditionally to ease any worries in society.'
The announcement came after Donald Tsang Yam-kuen, amid mounting public criticism, ordered Secretary for the Civil Service Denise Yue Chung-yee to review her decision to let Mr Leung take the job.
Mr Tsang's intervention came after it emerged the approval was given without consideration being given to Mr Leung's role in the sale of the  Hunghom Peninsula housing estate to a consortium including a subsidiary of New World Development.
Mr Leung, 62, began work last week as executive director and vice-chairman of  New World China, the group's mainland property arm.
New World Development was at the centre of a row in 2004 when a consortium involving its subsidiary NWS Holdings and Sun Hung Kai Properties bought Hunghom Peninsula - a prime waterfront estate built for sale but never occupied -  from the government for barely half the asking price, then announced plans, later abandoned, to knock it down.
Miss Yue and the Transport and Housing Bureau both issued apologies  yesterday.  'The whole matter has caused much public concern, comments and queries,' Miss Yue said. 'On this, I would like to express my sincere apology.'
Asked if she would resign, she said: 'I am much committed and do very much love my present job. I hope I can  continue to do the job.'
When she spoke to reporters earlier yesterday, Miss Yue would not say whether  she would rescind the approval for Mr Leung to take up the New World post.   'What Mr Leung wants to do with his job, it is up to him to decide,' she said.
Legal experts then warned that the government could face a lawsuit if Mr Leung had to quit his job because approval for it was withdrawn.
An executive councillor, who declined to be named, said the primary responsibility rested with the Transport and Housing Bureau.
The bureau said  it had ruled that Mr Leung's case would not involve conflict of interest since  his job would mainly involve business on the mainland. 'We had not considered Mr Leung's involvement in the Hunghom Peninsula development when we processed his application,' it  said.
The Chief Executive's Office said the Civil Service Bureau had not considered Mr Leung's involvement in the sale either,   nor the fact  a New World subsidiary was one of the companies involved. Nor had it considered how the public might react.



Ex-official quits job with developer