Former Hong Kong official Wilson Fung accused of concealing HK$510,000 sweetener from sister-in-law of gaming tycoon Stanley Ho
- Prosecutors accuse former deputy secretary for economic development and labour of serious misconduct in public office
- Cheyenne Chan, former HK Express director, also charged over a 2004 payment made when Fung was responsible for air traffic rights
Opening a 15-day trial against the pair at the District Court, prosecutors accused Wilson Fung Wing-yip, the former deputy secretary for economic development and labour, of serious misconduct in public office by deliberately concealing a HK$510,000 deposit (US$65,000) from businesswoman Cheyenne Chan Ung-iok, 62, despite what they called an obvious conflict of interest.
Prosecutor Maggie Wong Pui-kei SC said Chan’s sweetener severed Fung’s loyalty to his office at the height of his career.
[T]here is no reason for him to not know what constituted a conflict of interests.
Wong said neither the government nor the public knew Fung had private dealings with Chan during the three years when he handled various important and sensitive applications made by three of her companies.
The companies – Helicopters Hong Kong, Hong Kong Express Airways and Heli Express – had applied for routes and air traffic rights and had requested rent reduction as well as an expansion of landing sites.
“[Fung’s] acceptance of the payment was truly inappropriate and his lack of declaration went against his duty as a public officer,” the prosecutor said.
“Given that he had been in public office for more than 20 years, there is no reason for him to not know what constituted a conflict of interests.”
Fung, 55, is the husband of Betty Fung Ching Suk-yee, head of the government’s Policy Innovation and Coordination Office.
District Judge Douglas Yau Tak-hong granted the defendants permission to sit outside the dock for easier access to documents.
The court heard the defendants first met during official business in 2003.
Chan’s company Wiseson Limited indicated interest in buying the flat on September 23, 2004, and engaged Ricacorp Properties to handle the purchase.
Five days later, Fung similarly indicated his interest in the flat and engaged the same agent to handle the property.
Ex-official in court with Macau businesswoman for flat-swapping deal
On the same day, Wong said, Chan signed a provisional agreement for sale and purchase to buy the flat at HK$10.2 million, with Fung’s name written as the buyer.
Chan then withdrew a HK$510,000 cheque from her personal HSBC account to settle the initial deposit and told her lawyer, Peter Ha, that the buyer was her friend, Wong said.
But Wong said Fung had kept his private dealings involving Chan from his direct superior at the time and the government as well as the public.
In the meantime, Wong said Fung on December 9 approved an application by Hong Kong Express to operate flights from Hong Kong to Guangzhou and Shenzhen – without making any necessary disclosures.
Former official Wilson Fung leaves Airport Authority as bribery trial looms
The non-disclosure came despite repeated reminders from the Civil Service Bureau that officials declare any potential conflict of interests that would affect the government’s operations and the public’s confidence.
Wong said prosecutors need not rely on specific incidents of favourable treatment to allege misconduct, since they had characterised the alleged advantage as a sweetener for Fung to be – or to remain – favourably disposed to Chan.
She also gave seven other examples alleging that Chan’s companies had been given favourable treatment in applications made between September 2004 and July 2006.
Ex-Airport Authority boss charged with bribery over HK$510,000 property deal
In one episode, Wong said CR Airways complained that the Economic Development and Labour Bureau had treated HK Express favourably when it rejected its application air traffic rights for Hangzhou, Nanjing and Chongqing – but approved HK Express.
Chan and Fung were arrested on November 3, 2016.
According to Wong, Fung told investigators that the flat was bought as an investment. He also maintained that he had remained impartial in his public duties because his private dealings with Chan had nothing to do with his job.
The prosecutor drew the court’s attention to a notebook seized from Chan’s office, which recorded in her handwriting that a very senior person within the bureau has been recruited to help.
The trial continues on Tuesday.
