The Executive Council, which advises and assists the chief executive in policymaking, has the highest executive authority in Hong Kong. And because of its power, members are bound by the rules of confidentiality and collective responsibility. The conduct of each member affects not only the image and reputation of the council but also that of the government.
Earlier this week, Ming Pao reported that Exco member Lau Wong-fat had failed to disclose to the council that he had bought three houses in Yuen Long's Palm Springs in April through an investment company in which he holds a 40 per cent stake. The omission contravenes Exco's rule that members should declare any change in property ownership within 14 days.
More seriously, Lau bought 16 flats at Yoho Midtown, also in Yuen Long, through companies linked to him, either shortly before or on the day the government introduced policies to curb speculative activities to cool the overheated property market. The Palm Springs purchase was also initiated around the time of the announcement, on February 24. Some of these properties were sold in so-called confirmor transactions before the government made another announcement on August 13 to clamp down on the practice, in which a property is resold before the transaction is completed.
Not only is this a potential conflict of interest, it could be a possible case of abuse of public office.
The Exco rule of requiring members to declare all registrable interests is not legally binding. However, the rule clearly stipulates that members need to declare any change of property ownership within 14 days. It is therefore unreasonable to play with words to try to cover up a wrongdoing, whether deliberate or not.
It is unacceptable for Lau to try to defend himself by saying that a change of ownership means the transaction has to be completed with all payment cleared and does not include the signing of a sale agreement at the initial stage. He certainly shouldn't shirk his responsibility by blaming his staff for failing to report the matter.
Even though it could have been a genuine oversight, the act of using confirmor transactions as a sales tactic is, in itself, speculative behaviour, which is unbecoming of a member of Exco.