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New World Development

Former housing chief in fresh controversy

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Gary Cheung

Ex-housing chief Leung Chin-man, whose post-retirement job with a subsidiary of property giant New World Development caused a public outcry three years ago, is working for Chow Tai Fook Enterprises - a major shareholder in the developer.

A senior executive of New World Development yesterday confirmed that Leung had been offering consultancy services for Chow Tai Fook's property business on the mainland through his own company for the last month.

Chow Tai Fook's businesses span the retail, property and hotel sectors in Hong Kong and the mainland. It is owned by Cheng Yu-tung, chairman of New World Development.

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Lawmakers from across the political spectrum have expressed anger at Leung's work for Chow Tai Fook, saying it will renew public suspicion of collusion between the government and the business sector.

Leung triggered criticism over a possible conflict of interest when he became executive director and vice-chairman of New World China Land, the mainland subsidiary of New World Development, in August 2008.

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As housing chief in 2004, Leung played a key role in the government's sale of Hung Hom Peninsula, a never-occupied, subsidised housing estate, for barely half the asking price to a consortium that included a sister company of New World Development. He worked for the developer for only two weeks, and stepped down hours after Chief Executive Donald Tsang Yam-kuen ordered a review of the Civil Service Bureau's decision to approve his new job.

A Legislative Council select committee investigation concluded in December that it was inappropriate for Leung to have taken the job, and criticised him for deliberately hiding facts in his application to the government for permission to join the firm.

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