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