Hong Kong PolyU chief tells staff to ‘rest assured’ over BVI firms
Professor Timothy Tong Wai-cheung admits firms in the British Virgin Islands were never mentioned in any annual reports by the publicly funded university
The president of Polytechnic University has broken his silence over the revelation that it owns two secretive companies, asking staff to “rest assured” of their legitimacy in a statement that left key questions unanswered.
In an email to PolyU staff and students yesterday, obtained by the Post, Professor Timothy Tong Wai-cheung confirmed the firms in the British Virgin Islands were never reported in any annual reports published by the publicly funded university, insisting that the university's council chairman was “informed” when the firms were incorporated in 2012 and 2013.
Tong’s email did not address the Post’s revelation that one of the BVI firms helped transfer a bulk of PolyU’s share in a joint venture to a pro-Beijing businessman. It remains unknown how much PolyU’s BVI arm received in return for the offer.
“Please rest assured that the decision of using a BVI company arrangement had been carefully reviewed by the management and vetted by an advisory committee comprising external members, and with advice from a reputable external law firm,” said Tong, who according to an earlier press release approved of the decision to go offshore.
Nicholas Yang Wei-hsiung, now Hong Kong’s secretary for innovation and technology, was part of PolyU’s management at that time. As its executive vice-president, he signed a document facilitating the BVI registration according to leaked Panama Papers.
Tong said the purpose and process were legitimate. The council chairman at that time, and a committee on knowledge transfer under the council, were informed of the decision, he said.
This sets PolyU apart from Chinese University, which also owns a BVI firm but obtained approval of the whole governing body beforehand and disclosed the firm in its annual reports.
Tong defended the lack of financial disclosure, saying the firms were of “financial immateriality and complete lack of significance”. He insisted PolyU applied the same principle consistently “to onshore as well as offshore companies” it owned.
Tong defended the use of BVI firms as a means to “insulate PolyU from risks” arising from the business in which the university was no longer actively involved. It also helped “save costs and management time”, he added.
Former PolyU council member Andy Chan Man-fai said he remained unconvinced by Tong’s explanation.
“The school has still failed to explain clearly why BVI firms have to be used. Is there anything a Hong Kong firm could not do?” he said. “No one would know what happened behind if the school insisted on omitting the existence of the offshore firms. The university should be scrutinised by public.”
