UpdateEverything you need to know about Hong Kong leader CY Leung’s HK$50 million UGL deal and more

A controversial agreement between the chief executive and an Australian firm is back in the spotlight after revelations that Leung intervened in a Legco probe of the matter

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The UGL saga involving Chief Executive Leung Chun-ying is back in the headlines after revelations that the city’s leader intervened in an investigation by a Legco panel. Photo: David Wong

Published: 11:30am, 19 May 2017Updated: 1:03pm, 23 May 2017

What is UGL? What does it have to do with Leung Chun-ying?

UGL is an Australian company that took over DTZ, a real estate services firm, in 2011. Leung was a DTZ board member.

In October 2014, right after Occupy Central broke out, the Australian media revealed a deal between Leung and UGL in relation to the takeover, sending shock waves across Hong Kong.

Under the agreement signed in December 2011, Leung would receive a total of HK$50 million in 2012 and 2013. Even though the deal was signed three months before his 2012 election as chief executive, the payments were to be made in two tranches during his tenure as Hong Kong’s leader.

In return, Leung agreed not to join any rival firm or entice any former clients. He also agreed to help “promote” UGL and DTZ and act as a “referee and adviser from time to time”.

What accusations has Leung been facing over the UGL deal?

The pan-democrats have accused Leung of failing to declare his fees to his cabinet, the Executive Council, and argued that the payments could give rise to a conflict of interest. But Leung said he did not have to make a declaration because it was a common “resignation arrangement” in the business world, and he had never run into any conflict of interest.