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Former chief executive Donald Tsang Yam-kuen and his wife, Selina Tsang Pou Siu-mei, leave the High Court in Admiralty after the trial. Photo: Dickson Lee

A penthouse, yachts and martial arts novels: everything you need to know about Donald Tsang’s bribery trial

An eight-person jury will decide the fate of the former Hong Kong chief executive as they continue their deliberations on Thursday

Donald Tsang

After 24 days of testimony and lawyers’ speeches, the jury in former Hong Kong leader Donald Tsang Yam-kuen’s bribery trial was finally sent out for deliberation at 1pm on Thursday. It is a case that hinges on a three-storey penthouse on the mainland, its HK$3.8 million renovation, and a businessman who owns both the penthouse and a local radio station. Four men and four women were given the task of determining whether their former chief executive had indeed been, as the prosecutors put it, “hopelessly compromised”.

Seven hours not enough as deliberations to enter a second day in former Hong Kong leader Donald Tsang’s bribery trial

The eight jurors continue their deliberation on Friday after they failed to reach a verdict on Thursday night. Here are some of the things they have to consider:

The law and core allegations

Tsang is charged with accepting an advantage as the chief executive, in breach of Section 4 of the city’s Prevention of Bribery Ordinance.

Between 2010 and 2012, he allegedly accepted free renovation work for a penthouse in Shenzhen, where he planned to retire after he stepped down in June, 2012.

In return, the prosecutors say, he became “favourably disposed” to local radio station Wave Media, whose majority owner, Bill Wong Cho-bau, owned the penthouse and also picked up the refurbishment bill.

The penthouse

The three-storey property, measuring 6,700 sq ft, is located in what the prosecutors called the “fashionable” district of Futian.

Out of the HK$3.8 million spent on refurbishing the place, HK$350,000 went to internationally renowned architectural designer Barrie Ho Chow-lai, who was engaged to carry out the work.

Barrie Ho Chow-lai appears at the High Court in Admiralty. Photo: Xiaomei Chen

Ho mainly met Tsang’s wife, Selina Tsang Pou Siu-mei – though Tsang was present at times – on 14 occasions to fit the penthouse with tailor-made settings, such as a calligraphy room, gym, landscape garden and winery. On one occasion, Selina Tsang brought a feng shui master to inspect the property.

Juror in former Hong Kong leader Donald Tsang’s bribery trial dismissed without explanation

Why would a tenant be provided with a custom design for the property they were renting, the prosecutors asked.

The defence said this was all part of a legitimate commercial deal, for which Tsang had paid rent. The penthouse needed a facelift anyway, Tsang’s lawyers said, because it was formerly a “naughty” clubhouse where businessmen would have parties and stay overnight.

Paying for the renovation had nothing to do with Wave Media, they argued. Instead, it made commercial sense: after the Tsangs had stayed there, Wong could market the penthouse as having been designed for the chief executive, the defence said.

Lease and payment

During the investigation, the Independent Commission Against Corrupt discovered a set of documents, including a lease and a receipt for 800,000 yuan, dated February 21, 2012, about the time the penthouse came under the press scrutiny.

But the only 800,000 yuan payment they could locate, according to bank records, was made in 2010.

Why would someone pay their rent two years ahead of when they wanted to move into a property, prosecutors asked.

The defence said this was because the Tsangs needed to show their commitment to Wong.

The prosecutors rejected that explanation. They suggested that Tsang wanted to buy the penthouse at a price below market value.

They also questioned why the renovation work had ground to a halt after it was reported in the media, if it had in fact been a legitimate deal.

Declare or not to declare

Tsang had not made any declaration about the arrangements concerning the penthouse.

The prosecutors said he had to conceal the deal because it was a corrupt one.

But the defence argued that this was only an oversight, which should not be penalised.

Accompanied by his wife Selina Tsang Pou Siu-mei, former chief executive Donald Tsang Yam-kuen leaves the Cathedral of the Immaculate Conception in Central. Photo: Felix Wong

The alleged favour

Between 2010 and 2012, Tsang, as the head of the city’s top advisory body, the Executive Council, granted three applications by Wave Media, including a potentially lucrative digital licence.

The prosecutors argued that they did not need to prove any actual acts. What they did have to do was to demonstrate that after accepting the bribe, Tsang became Wave Media’s ally in the government.

Where is the motive to provide a bribe, the defence then asked. Tsang’s lawyers suggested that based on the circumstances at the time, Wave Media would have obtained the licence anyway.

Other radio bosses, and the jets and yachts

Bank records show that Bank of East Asia chairman David Li Kwok-po, who is also a Wave Media shareholder, had withdrawn HK$350,000 from the central branch of his bank on July 16, 2010, just shortly before Tsang’s wife deposited the same amount at the same bank on the same day. Li had given the Tsangs the money, the prosecution said.

They also said Li might have sponsored Tsang’s police bodyguard for one of his private trips to Europe in 2010.

Judge in Donald Tsang bribery trial tells jury to decide case on facts – not emotions

Meanwhile, radio personality Albert Cheng King-hon, who had aggressively lobbied for Wave Media as a shareholder, recommended Barrie Ho to take up the renovation project.

The defence said their opponent was merely stringing together coincidences to make the allegations sound like an attractive story “from a martial arts novel” for the jury.

David Li Kwok-po. Photo: Jonathan Wong
Instances of Tsang riding in his friend’s private jets and yachts were also mentioned in court.

But it was made clear to the jurors that Tsang had never been charged for his connection with Li, or for the trips. The prosecutors said these events provided context.

What the judge asked the jury to decide

1. Whether Tsang, as the chief executive, had accepted an advantage

2. Whether it was without a lawful excuse

3. Whether the advantage was an inducement or reward for Tsang to become favourably disposed to Wave Media

4. Whether Tsang was acting in the capacity of the chief executive when he became favourably disposed to Wave Media

5. Whether becoming favourably disposed to Wave Media was within his capacity as chief executive

6. If Tsang knew of all the above factors

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