Advertisement

Hong Kong appoints investigator to probe fraud allegations in the financial affairs of Apple Daily’s publisher Next Digital

  • Clement Chan Kam-wing, the managing director for assurance of the accounting firm BDO, has been appointed as inspector
  • The inspector has been asked to deliver the report of his Next Digital investigation in six months

Reading Time:4 minutes
Why you can trust SCMP
11
Clement Chan Kam-wing, accounting firm BDO’s managing director for assurance, will investigate the finances of Next Digital. Photo: Jonathan Wong
Hong Kong authorities have appointed a high-powered inspector to investigate the finances of Next Digital, accusing the parent company of the now-defunct Apple Daily newspaper of engaging in illegal and fraudulent activities.
Advertisement

Announcing that the government was taking such a step under the Companies Ordinance for the first time in two decades, Financial Secretary Paul Chan Mo-po on Wednesday said that the investigation would be conducted by Clement Chan Kam-wing, accounting firm BDO’s managing director for assurance.

The new inspector has six months to submit his report on the company controlled by jailed media tycoon Jimmy Lai Chee-ying.

“There are circumstances suggesting … Next Digital has been run in a manner unfairly prejudicial to the interests of its shareholders and creditors,” Chan said.

Hong Kong’s Financial Secretary Paul Chan Mo-po said Next Digital’s senior executives had breached their fiduciary duties. Photo: Nora Tam
Hong Kong’s Financial Secretary Paul Chan Mo-po said Next Digital’s senior executives had breached their fiduciary duties. Photo: Nora Tam
Advertisement

He read out a list of accusations, saying Next Digital officers had “used the listed company to conduct unlawful activities and have themselves been involved in various alleged fraud offences and misconduct”, senior officers had “breached their fiduciary duties and failed to observe proper standards of care in the performance of their duties” and “the governance of the company had seriously fallen short of that expected of a listed company”.

loading
Advertisement