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Jasmine Siu

Pro-Beijing figure and lawyer Kennedy Wong Ying-ho on Tuesday denied paying millions in share options to gain influence over an executive director of a public company.
Wong, 54, pleaded not guilty to one count of offering an advantage to an agent as his trial opened in District Court after he was first implicated in the alleged crime five years ago.
Prosecutors alleged his payments to the director, the late Herbert Hui Ho-ming, created “an intolerable and ongoing conflict of interest” as it served as a reward for past acts and an inducement for future acts, on top of being a general sweetener.
“It’s a classic case of receiving a second, and much larger bonus, without permission from the employers who expect exclusive trust and loyalty,” prosecutor Gerard McCoy SC said.
Pro-Beijing lawyer Kennedy Wong faces ICAC bribery charges
Wong is a delegate to the Chinese People’s Political Consultative Conference, Beijing’s top political advisory body.
The charge centres on a share option Wong granted to Hui on August 19, 2009, while they were both executive directors of Hong Kong Resources Holdings, at HK$1 for the subscription of 15 million preference shares in the company.
But Hui – who was already receiving a company share option as a bonus for his contribution – was only required to pay HK$0.12 per share, against a closing price of HK$1.33 on the day.
These shares were then converted into ordinary shares two months later, giving Hui some HK$21.3 million (US$2.7 million).
As Hui was then earning an annual salary of HK$1.5 million, the shares were equivalent to 14 years’ worth of salary.
A law criminalising the failure to prevent bribery could prove an effective tool in Hong Kong
“The defendant effectively bought the loyalty of another influential member of the board,” McCoy said. “The fact is that Mr Hui was now significantly and personally indebted to the defendant, and would be favourably disposed towards him whenever there might be conflict.”
But the prosecutor said the two decision-makers of the company, the board of directors and other shareholders, were kept in the dark while Wong ran the public company “as though it were his own private business”.
It’s just like me personally distributing some shares … or selling them at a lower price
Lawyer Kennedy Wong, who is currently on trial for bribery
“The defendant, an experienced company director, lawyer, and politician, knew perfectly well that a company director cannot be bought in such a manner,” McCoy said.
Wong admitted when he was arrested in 2012 that the purpose of his offer was to secure Hui’s long-term cooperation.
“It’s just like me personally distributing some shares … or selling them at a lower price,” he was recorded by police as saying.
“[Hui’s] been supervising and working, working on some special projects for me, and having cooperation with some diamond companies, in the USA. So at the time I wanted him to have an interest in it and, kind of long term, so these things were granted to him.”
Hui died on August 30, 2014. He had held several prominent roles in the city besides executive director at Hong Kong Resources Holdings, including chairman of the Institute of Directors and head of the listing division of the Hong Kong stock exchange.
Prosecutors were expected to call their first witness on Monday.


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Hong Kong courts

Kennedy Wong pleads not guilty to bribery charge as trial opens

Kennedy Wong Ying-ho, 52, has denied a charge that he paid off the director of a public company. Photo: Dickinson Lee

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Hong Kong

Law and Crime

Prosecutors accuse delegate to Beijing’s top political advisory body of paying off an executive of a public company with share options


Kennedy Wong pleads not guilty to bribery charge as trial opens

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Prosecutors accuse delegate to Beijing’s top political advisory body of paying off an executive of a public company with share options

.css-jfmysa{display:inline;word-break:break-word;}.css-1ankfgb{cursor:pointer;display:inline;word-break:break-word;}Pro-Beijing lawyer Kennedy Wong faces ICAC bribery charges

Prosecutors accuse delegate to Beijing’s top political advisory body of paying off an executive of a public company with share options

Pro-Beijing lawyer Kennedy Wong faces ICAC bribery charges